Morgan Stanley Reaffirms Overweight Rating for Neurocrine Biosciences

In a recent research note, Morgan Stanley has reaffirmed an "overweight" rating for Neurocrine Biosciences (NASDAQ:NBIX). The investment firm has set a new price target of $150.00 for the stock, which is a reduction from the previous target of $185.00. This revised price target suggests a potential upside of 32.29% from the stock's most recent closing price.

Other analysts have also published their insights on Neurocrine Biosciences. Guggenheim recently lowered their price target from $165.00 to $163.00 while maintaining a "buy" rating. On February 11th, Deutsche Bank initiated coverage on the company, rating it as a "hold" with a price target set at $138.00. Additionally, Wedbush adjusted their price target down from $157.00 to $147.00, keeping an "outperform" rating intact. The Royal Bank of Canada also trimmed their target from $154.00 to $148.00 while assigning a "sector perform" rating. William Blair also reiterated their "outperform" rating, signaling continued confidence in the stock. Across various analysts, five have issued a hold rating, while eighteen provided a buy rating, with one analyst giving it a strong buy. According to MarketBeat, Neurocrine Biosciences holds a consensus rating of "Moderate Buy" along with an average price target of $165.24.

Neurocrine Biosciences Stock Performance

Shares of Neurocrine Biosciences experienced a slight increase, trading up by 0.6% to reach $113.39 on Friday. Volume for the day included 443,226 shares exchanged, in contrast to its average trading volume of 1,318,776 shares. The stock has seen a one-year low of $110.25 and a high of $157.98, giving it a market capitalization of approximately $11.30 billion. The company has a price-to-earnings ratio of 34.39, a price-to-earnings-growth ratio of 0.77, and a beta of 0.33. Currently, the 50-day and 200-day moving averages sit at $133.00 and $127.59, respectively.

Recent Earnings Results and Share Repurchase Program

Neurocrine Biosciences recently announced its earnings results for the quarter ending February 6th. Unfortunately, the company reported earnings per share of $1.00, falling short of analyst expectations by $0.62. Nonetheless, the company reported a return on equity of 13.38% and a net margin of 14.49%. Looking ahead, analysts project that Neurocrine will report earnings per share of 4.28 for the current year.

In a significant move, the company’s Board of Directors approved a share repurchase program allowing the buyback of up to $500 million worth of shares. This initiative indicates the management's belief that the stock is undervalued in the current market.

Insider Transactions

Recent transactions reveal some insider activity within Neurocrine Biosciences. Insider Julie Cooke sold 1,551 shares at an average price of $116.78, totaling around $181,125.78. Post-sale, Cooke holds 19,544 shares now valued at approximately $2.28 million. Additionally, Director Kevin Charles Gorman sold 2,707 shares at an average price of $152.92, amounting to $413,954.44, which reflects a reduction in ownership of 0.52%. Overall, insiders sold 234,269 shares valued at $34,053,879 over the last ninety days, with insiders currently owning 4.30% of the company stock.

Institutional Investor Activity

The stock has seen significant movements among institutional investors. Dodge & Cox increased its holdings by 134.2% during the last quarter, now owning over 3 million shares worth $411.74 million. Raymond James acquired new shares valued at approximately $115 million in the same period. Wellington Management raised its position by 102.9%, and Thrivent Financial increased its holdings by a staggering 2,759.4%. Orbimed Advisors also significantly grew its position, now holding $128 million in shares. Collectively, institutional investors own around 92.59% of Neurocrine Biosciences stock.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. specializes in discovering, developing, and marketing pharmaceuticals targeting neurological, neuroendocrine, and neuropsychiatric disorders both in the United States and internationally. Its key products include INGREZZA, which treats tardive dyskinesia and chorea related to Huntington's disease, as well as ALKINDI for adrenal insufficiency, Efmody capsules for congenital adrenal hyperplasia, Orilissa tablets for endometriosis, and Oriahnn capsules for uterine fibroids.

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