Relay Therapeutics (NASDAQ:RLAY) Shares Gap Up After Strong Earnings

Shares of Relay Therapeutics, Inc. (NASDAQ:RLAY) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $7.08, but opened at $8.71. Relay Therapeutics shares last traded at $7.04, with a volume of 251,890 shares.

The company reported ($0.62) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.70) by $0.08. The company had revenue of $10.01 million for the quarter, compared to analysts’ expectations of $0.12 million. Relay Therapeutics had a negative return on equity of 42.19% and a negative net margin of 1,263.49%. Relay Therapeutics’s quarterly revenue was up 4327.9% on a year-over-year basis. During the same period last year, the firm earned ($0.78) earnings per share.

Wall Street Analysts Forecast Growth

RLAY has been the subject of a number of recent analyst reports. Stifel Nicolaus lifted their price target on Relay Therapeutics from $25.00 to $30.00 and gave the stock a “buy” rating in a report on Thursday, February 22nd. Leerink Partnrs reaffirmed an “outperform” rating on shares of Relay Therapeutics in a report on Thursday, February 22nd. Five research analysts have rated the stock with a buy rating, According to MarketBeat.com, Relay Therapeutics presently has an average rating of “Buy” and a consensus target price of $26.00.

Hedge Funds Weigh In On Relay Therapeutics

Several institutional investors have recently added to or reduced their stakes in the stock. New York State Common Retirement Fund increased its position in Relay Therapeutics by 3.2% in the 4th quarter. New York State Common Retirement Fund now owns 36,678 shares of the company’s stock valued at $404,000 after acquiring an additional 1,127 shares during the period. Handelsbanken Fonder AB increased its position in Relay Therapeutics by 5.7% in the 4th quarter. Handelsbanken Fonder AB now owns 29,500 shares of the company’s stock valued at $325,000 after acquiring an additional 1,600 shares during the period. Swiss National Bank increased its position in Relay Therapeutics by 1.2% in the 3rd quarter. Swiss National Bank now owns 173,800 shares of the company’s stock valued at $1,462,000 after acquiring an additional 2,000 shares during the period. Congress Asset Management Co. MA increased its position in Relay Therapeutics by 1.4% in the 1st quarter. Congress Asset Management Co. MA now owns 149,082 shares of the company’s stock valued at $1,237,000 after acquiring an additional 2,108 shares during the period. Finally, Los Angeles Capital Management LLC increased its position in Relay Therapeutics by 25.7% in the 1st quarter. Los Angeles Capital Management LLC now owns 13,939 shares of the company’s stock valued at $116,000 after acquiring an additional 2,850 shares during the period. Institutional investors and hedge funds own 96.98% of the company’s stock.

Relay Therapeutics Stock Performance

The stock has a market cap of $931.67 million, a price-to-earnings ratio of -2.67 and a beta of 1.68. The company has a 50-day moving average of $7.86 and a 200-day moving average of $8.78.

About Relay Therapeutics

Relay Therapeutics, Inc operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors.