Yesterday, we reported that shares of Epizyme Inc (NASDAQ:EPZM) had fallen 15% (at the time of writing) due to the company announcing plans to issues an additional $120 million in common stock shares. While this secondary offering is intended to help the company grow, prepare for a global launch of their drug, tazemetostat, and expand on their research and development, shareholders rarely respond favorably to share dilution.
This is why in the pre-market today, shares of Epizyme Inc (NASDAQ:EPZM) continue to fall — down close to 20% from their closing price yesterday. You would think that this fall will eventually level off at some point today, as investors begin seeing an opportunity to get into a company that has a lot more capital to work with, at a large discounted price, but we shall see as the market opens this morning, exactly what happens.
Late last night, Epizyme Inc (NASDAQ:EPZM) announced that they will be pricing 13,333,334 shares of common stock at $9.00 per share, prior to any underwriting discounts. Underwriters will also have the option of purchasing 2 million additional shares.
The stock closed at $11.54 during the last trading session. It is down 39.93% since June 3, 2015 and is downtrending. It has underperformed the S&P500 by 34.07%.
From a total of 4 analysts covering Epizyme (NASDAQ:EPZM) stock, 4 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $42 while the lowest target price is $26. The mean of all analyst targets is $33.67 which is 191.77% above today’s ($11.54) stock price. Epizyme was the topic of 5 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on September 28 with a “Outperform” rating. Mizuho maintained EPZM stock in a recent report from August 6 with a “Buy” rating.
The institutional sentiment decreased to 1.47 in Q2 2015. It’s down 0.03, from 1.5 in 2015Q2. The ratio is negative, as 14 funds sold all their Epizyme Inc shares they owned while 24 reduced their positions. 17 funds bought stakes while 39 increased their total positions. Institutions now own 42.10 million shares which is 24.69% more than the previous share count of 33.76 million in 2015Q2.
Ecor1 Capital Llc holds 8.74% of its total portfolio in Epizyme Inc, equating to 1.49 million shares. Nea Management Company Llc owns 5.15 million shares representing 4.36% of their total US portfolio. Moreover, Foresite Capital Management Ii Llc has 3.94% of their total portfolio invested in the company, equating to 1.01 million shares. The Massachusetts-based Mpm Asset Management Llc has a total of 3.42% of their portfolio invested in the stock. Palo Alto Investors Llc, a California-based fund reported 2.12 million shares owned.
Since May 6, 2015, the stock had 0 insider purchases, and 4 sales for a total of $1.52 million in net activity. Copeland Robert A sold 4,185 shares worth $60,380. Gould Robert J sold 60,000 shares worth $1.19M. Ho Peter Tai-Ching bought 800 shares worth $13,084.
Epizyme, Inc. is a clinical-stage biopharmaceutical firm that discovers, develops and plans to commercialize epigenetic therapies for cancer patients. The company has a market cap of $481.26 million. The Company’s product platform creates small molecule inhibitors of a 96-member class of enzymes known as histone methyltransferases, or HMTs. It currently has negative earnings. The Company’s lead product candidate, EPZ-6438 is an inhibitor that targets the EZH2 HMT.