Viking Therapeutics director sells shares worth over $715,000, but company shows positive drug progress

From Investing.com: 2024-09-20 21:24:00

Viking Therapeutics, Inc. director J. Matthew Singleton sold over $715,000 worth of company stock on September 20, 2024, reducing his direct ownership to 9,500 shares. The transaction was part of a prearranged trading plan. Viking focuses on developing therapies for metabolic and endocrine disorders, with insider transactions often indicating executives’ confidence and stock direction.

Viking Therapeutics has made progress with weight loss drug VK2735, showing positive early tolerability results of up to 5.3% weight loss at the highest dose in Phase 1 trials. The drug has a clean safety profile, contrasting with competitor Roche’s CT-996. Analysts are optimistic about VK2735’s potential for significant weight loss and market capture.

JPMorgan initiated coverage of Viking Therapeutics with an Overweight rating, anticipating VK2735 could capture 10% of the U.S. oral obesity market. Truist Securities maintained a Buy rating, with a target price of $120.00. Investor interest in Viking’s commercial prospects for VK2735 remains high following insider activity and positive analyst outlook, reflecting the company’s significant market capitalization and strong stock performance.

As Viking Therapeutics faces upcoming milestones and market evaluations, investors can consider the implications of insider selling, the company’s high Price to Book valuation, and its strong stock performance over the past year. Analysts forecast improved earnings in the future, but the company may not achieve profitability this year, with the next earnings report on October 30, 2024 likely to offer further insights into Viking’s trajectory and market sentiment.



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