Royal Bank of Canada Reaffirms Outperform Rating for Avid Bioservices (NASDAQ:CDMO)

Avid Bioservices (NASDAQ:CDMO)‘s stock had its “outperform” rating reiterated by stock analysts at Royal Bank of Canada in a research report issued on Wednesday, Benzinga reports. They currently have a $8.00 price objective on the biopharmaceutical company’s stock. Royal Bank of Canada’s price objective would suggest a potential upside of 11.27% from the stock’s previous close.

Avid Bioservices Stock Performance

NASDAQ:CDMO traded up $0.49 on Wednesday, hitting $7.19. The stock had a trading volume of 353,055 shares, compared to its average volume of 1,182,154. The stock has a market cap of $456.42 million, a price-to-earnings ratio of -26.41 and a beta of 1.36. The company has a quick ratio of 0.31, a current ratio of 0.46 and a debt-to-equity ratio of 0.04. The business’s 50-day simple moving average is $7.97 and its two-hundred day simple moving average is $7.21. Avid Bioservices has a 52-week low of $4.07 and a 52-week high of $14.27.

Avid Bioservices (NASDAQ:CDMO) last posted its quarterly earnings data on Wednesday, April 24th. The biopharmaceutical company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.06). Avid Bioservices had a negative net margin of 13.10% and a negative return on equity of 8.78%. The company had revenue of $33.82 million for the quarter, compared to analysts’ expectations of $33.80 million. As a group, research analysts predict that Avid Bioservices will post -0.23 earnings per share for the current year.

Insider Activity at Avid Bioservices

In related news, CEO Nicholas Stewart Green sold 11,762 shares of Avid Bioservices stock in a transaction that occurred on Tuesday, April 30th. The stock was sold at an average price of $7.40, for a total transaction of $87,038.80. Following the sale, the chief executive officer now owns 203,606 shares of the company’s stock, valued at approximately $1,506,684.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last 90 days, insiders have sold 17,236 shares of company stock valued at $127,546. 2.39% of the stock is owned by company insiders.

Institutional Trading of Avid Bioservices

A number of large investors have recently added to or reduced their stakes in CDMO. 12 West Capital Management LP bought a new stake in Avid Bioservices in the 1st quarter worth approximately $18,425,000. Wellington Management Group LLP increased its stake in Avid Bioservices by 72.9% in the 3rd quarter. Wellington Management Group LLP now owns 1,163,242 shares of the biopharmaceutical company’s stock worth $10,981,000 after acquiring an additional 490,569 shares during the last quarter. Federated Hermes Inc. bought a new stake in Avid Bioservices in the 4th quarter worth approximately $2,090,000. Roubaix Capital LLC increased its stake in Avid Bioservices by 374.2% in the 4th quarter. Roubaix Capital LLC now owns 369,158 shares of the biopharmaceutical company’s stock worth $2,400,000 after acquiring an additional 291,315 shares during the last quarter. Finally, Kent Lake Capital LLC bought a new position in shares of Avid Bioservices during the 1st quarter valued at approximately $1,879,000. Institutional investors own 97.16% of the company’s stock.

Avid Bioservices Company Profile

Avid Bioservices, Inc, a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services of biologics for the biotechnology and biopharmaceutical industries. The company offers various services, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support.