Viking Therapeutics, Inc. saw director J. Matthew Singleton sell company stock valued at over $715,000, as reported in a recent SEC filing. The transactions on September 20, 2024, involved the sale of 10,300 shares of Viking Therapeutics’ common stock at $69.50 per share.
Before the sale, Singleton had acquired the same number of shares through an option exercise at $1.19 per share, amounting to an investment of $12,257. Post-transaction, Singleton’s direct ownership in the company stands at 9,500 shares of common stock.
These transactions were conducted under a prearranged Rule 10b5-1 trading plan, which allows insiders to establish predetermined trades, mitigating potential insider trading claims.
Viking Therapeutics is a clinical-stage biopharmaceutical company developing therapies for metabolic and endocrine disorders. Insider transactions are often monitored by investors to gauge executive confidence in the company, providing possible indications of the stock’s future performance.
In other developments, Viking Therapeutics has progressed with its drug candidate VK2735, designed for weight loss treatment. Morgan Stanley noted early Phase 1 data showing favorable tolerability and up to 5.3% weight loss at the highest 40mg dose over four weeks, with a commendable safety profile. This contrasts with Roche’s CT-996, which has reported higher gastrointestinal adverse events at increased doses.
VK2735’s safety profile is favorable, particularly at higher doses, which were recently completed without safety concerns. Upcoming Phase 1 data updates at doses of 60mg, 80mg, and 100mg during the Obesity Week conference are anticipated to show greater weight loss while maintaining tolerability. This progress could drive Viking Therapeutics to start a Phase 2 study in the fourth quarter of 2024.
JPMorgan recently initiated coverage on Viking Therapeutics stock with an Overweight rating, suggesting VK2735 could capture roughly 10% of the U.S. oral obesity market. This assessment is based on the drug’s promising profile, not yet reflected in the current stock valuation. Additionally, Truist Securities maintained a Buy rating with a $120.00 price target, signaling positive commercial prospects for VK2735 following recent industry developments.
Viking Therapeutics’ market capitalization is approximately $7.76 billion. The Price to Book ratio for the last twelve months as of Q2 2024 is 8.48, indicating a premium valuation. The company has shown a one-year price total return of 429.45%, suggesting strong investor confidence.
Two relevant InvestingPro Tips about Viking Therapeutics include its high Price to Book multiple, correlating with the premium sale price of Singleton’s shares, and the significant stock return over the past year, potentially influencing Singleton’s timing for selling his shares.
Despite upward earnings revisions for the upcoming period, analysts do not expect the company to be profitable this year. This contrast between investor optimism and financial performance is critical when evaluating Viking Therapeutics’ future. The next earnings date is set for October 30, 2024, likely providing further insights into its operations and strategic direction.
This article was generated with AI assistance and reviewed by an editor. For more information, see the Terms and Conditions.
