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CymaBay Rose 127% on Positive NASH Trial Update

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On Tuesday, CymaBay Therapeutics (NASDAQ:CBAY) stock rose 127.2% after the company highlighted a positive NASH trial update. The healthcare company released its first-quarter earnings results after the market closed on Monday. CymaBay stock rose after the company beat the bottom-line estimates in the first quarter.

In the first-quarter earnings release, CymaBay CEO Sujal Shah said, “Last week a panel of some of the most experienced and distinguished liver pathologists and hepatologists in the world completed an independent review analyzing findings from our Phase 2b study of seladelpar in patients with NASH.” Shah added, “I am pleased to report that the panel unanimously concluded there was no clinical, biochemical or histological evidence of seladelpar-induced liver injury in the study, and as a result they also unanimously supported the lifting of the clinical hold and re-initiation of clinical development.”

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Q1 earnings results

In the first quarter, CymaBay Therapeutics’ research and development expenses decreased 48.8% YoY (year-over-year) to $9.5 million. The company’s total operating expenses also fell 42.6% YoY to $13.93 million. In the first quarter, CymaBay reported an EPS of -$0.19 compared to -$0.37 in the first quarter of 2019. The earnings beat analysts’ consensus estimate of -$0.30 per share for the first quarter.

What are analysts saying about CymaBay stock?

Ten Wall Street analysts cover CymaBay. Among the analysts, seven recommend a “buy” and three recommend a “hold.” None of the analysts recommend a “sell.” Wall Street analysts’ mean 12-month target price on the stock is $6.84, which implies a 64% gain from the current level of $4.18. The consensus target price for the stock has risen from $2.73 in April—a rise of about 151%.

Many analysts revised their target price for CymaBay stock after its first-quarter results.

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  • SVB Leerink upgraded the stock from “market perform” to “outperform” and increased its target price from $2.50 to $6.
  • Raymond James upgraded the stock from “market perform” to “outperform” with a target price of $7.
  • Stifel upgraded the stock from “hold” to “buy” and increased its target price from $4 to $8.
  • Evercore ISI upgraded the stock from “in-line” to “outperform” with a target price of $15.
  • Oppenheimer increased its target price from $4 to $6.
  • Cantor Fitzgerald increased its target price from $5 to $15.
  • Roth Capital upgraded the stock from “neutral” to “buy” and increased its target price from $2 to $15.
  • B. Riley FBR upgraded the stock from “neutral” to “buy” and increased its target price from $1.50 to $6.

Stock returns

CymaBay stock rose 127.2% on Tuesday and ended the day at $4.18. At this closing price, the company’s market cap is $287.9 million. The stock is trading 68.6% below its 52-week high of $13.32 and 245.5% above its 52-week low of $1.21.

Based on CymaBay’s closing price on Tuesday, the stock was trading 125.9% above its 20-day moving average of $1.85. The stock is trading 151.8% above its 50-day moving average of $1.66 and 141.6% above its 100-day moving average of $1.73. CymaBay stock’s 14-day relative strength index score of 90 suggests that the stock is overbought.

CymaBay’s lower, middle, and upper Bollinger Bands are $0.77, $1.85, and $2.94, respectively. The stock closed near its upper Bollinger Band level, which suggests that it’s overbought.

CymaBay stock rose 0.7% in pre-market today at 4:37 AM ET. The S&P 500 futures rose 0.2%, while the Dow futures rose 0.3%. To learn more, read What US Stock Market Crash? S&P 500 Tests 3,000.

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