Viking Therapeutics stock hits 52-week low at $28.61

Published 25/02/2025, 15:55
Updated 25/02/2025, 15:56
Viking Therapeutics stock hits 52-week low at $28.61

Viking Therapeutics Inc (NASDAQ:VKTX) shares tumbled to a 52-week low, touching down at $28.61 amidst a challenging market environment, marking a dramatic decline from its peak of $99.41. According to InvestingPro data, the stock has shed nearly 55% in the past six months. The biopharmaceutical company, which focuses on the development of therapies for metabolic and endocrine disorders, has seen its stock price struggle over the past year, culminating in this recent low point. Investors have been cautious, reflecting a broader trend in the biotech sector, with Viking’s shares experiencing a significant 1-year decline of 24.77%. Despite the downturn, InvestingPro analysis shows the company maintains a robust financial position with a remarkable current ratio of 33.09 and more cash than debt on its balance sheet. This downturn has raised concerns among stakeholders about the company’s near-term prospects, even as Viking continues to advance its clinical programs and strive for breakthroughs in its specialized therapeutic areas. While analyst targets range from $38 to $164, InvestingPro’s Fair Value analysis suggests the stock is currently slightly overvalued. Discover 10+ additional exclusive insights and detailed financial analysis in the Pro Research Report.

In other recent news, Viking Therapeutics reported its fourth-quarter and full-year 2024 financial results, revealing a fourth-quarter earnings per share (EPS) of ($0.32) and a full-year EPS of ($1.01), both missing analyst expectations. The company concluded the year with a strong cash position of $903 million, which is anticipated to support ongoing and future clinical programs. Viking is advancing its obesity treatment franchise, with key milestones set for 2025, including the initiation of Phase 3 trials for its subcutaneous VK2735. These trials aim to recruit at least 4,500 participants focusing on weight change as the primary endpoint.

Analyst firms have adjusted their outlooks for Viking Therapeutics. Truist Securities lowered its price target from $120 to $95 while maintaining a Buy rating, reflecting adjustments in valuation and the competitive landscape. H.C. Wainwright reaffirmed its Buy rating and a $102 price target, emphasizing Viking’s progress in its obesity treatment programs. Meanwhile, Citi initiated coverage with a Neutral rating and a $38 price target, highlighting the potential of Viking’s VK2735 but noting the need for more comprehensive safety data.

The company’s increased R&D spending, which rose to $31 million in Q4, underscores its commitment to advancing its clinical programs. Viking’s pipeline includes promising treatments for obesity and rare diseases, with positive clinical trial results noted for its lead programs. Despite the increased expenses, Viking’s robust cash reserves suggest financial stability for its future developments.

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