Verona Pharma (NASDAQ:VRNA) Shares Down 7% – Should You Sell?

Verona Pharma plc (NASDAQ:VRNA) traded down 7% on Tuesday . The company traded as low as $58.60 and last traded at $59.04. 1,377,325 shares changed hands during mid-day trading, an increase of 19% from the average session volume of 1,154,149 shares. The stock had previously closed at $63.49.

Analyst Ratings Changes

Several analysts have recently issued reports on VRNA shares. Roth Mkm started coverage on Verona Pharma in a research note on Friday, January 10th. They set a “buy” rating and a $68.00 price objective on the stock. Truist Financial restated a “buy” rating and issued a $57.00 target price (up from $44.00) on shares of Verona Pharma in a report on Wednesday, January 8th. Roth Capital set a $83.00 price target on shares of Verona Pharma in a report on Friday, February 28th. Canaccord Genuity Group upped their price objective on shares of Verona Pharma from $44.00 to $72.00 and gave the company a “buy” rating in a research note on Wednesday, February 12th. Finally, HC Wainwright raised their target price on shares of Verona Pharma from $60.00 to $75.00 and gave the stock a “buy” rating in a research report on Friday, February 28th. Six equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, Verona Pharma presently has an average rating of “Buy” and a consensus target price of $69.14.

Verona Pharma Price Performance

The company’s 50-day moving average is $62.43 and its 200-day moving average is $46.73. The firm has a market capitalization of $4.73 billion, a price-to-earnings ratio of -30.49 and a beta of 0.39. The company has a debt-to-equity ratio of 0.93, a current ratio of 13.03 and a quick ratio of 12.88.

Insider Buying and Selling

In related news, insider Kathleen A. Rickard sold 79,264 shares of the stock in a transaction on Wednesday, March 12th. The stock was sold at an average price of $8.35, for a total value of $661,854.40. Following the completion of the sale, the insider now directly owns 2,608,976 shares in the company, valued at approximately $21,784,949.60. This represents a 2.95 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Verona Pharma

Hedge funds have recently modified their holdings of the stock. Frazier Life Sciences Management L.P. increased its holdings in Verona Pharma by 2.1% during the 3rd quarter. Frazier Life Sciences Management L.P. now owns 3,383,950 shares of the company’s stock worth $97,356,000 after purchasing an additional 69,601 shares during the last quarter. Wellington Management Group LLP raised its holdings in Verona Pharma by 61.0% in the fourth quarter. Wellington Management Group LLP now owns 3,025,241 shares of the company’s stock valued at $140,492,000 after acquiring an additional 1,146,609 shares in the last quarter. Jennison Associates LLC boosted its stake in Verona Pharma by 8.5% during the 4th quarter. Jennison Associates LLC now owns 1,889,542 shares of the company’s stock valued at $87,750,000 after acquiring an additional 148,656 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Verona Pharma by 37.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,833,532 shares of the company’s stock worth $85,150,000 after acquiring an additional 498,338 shares in the last quarter. Finally, RTW Investments LP acquired a new position in Verona Pharma in the fourth quarter worth about $84,568,000. 85.88% of the stock is currently owned by hedge funds and other institutional investors.

Verona Pharma Company Profile

Verona Pharma plc, a clinical stage biopharmaceutical company, focuses on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The company's product candidate is ensifentrine, an inhaled and dual inhibitor of the phosphodiesterase (PDE) 3 and PDE4 enzymes that acts as both a bronchodilator and an anti-inflammatory agent in a single compound, which is in Phase 3 clinical trials for the treatment of chronic obstructive pulmonary disease, asthma, and cystic fibrosis.