In a report released today, Jason McCarthy from Maxim Group maintained a Buy rating on Inovio Pharmaceuticals (INO), with a price target of $8. The company’s shares closed on Friday at $3.70, close to its 52-week low of $3.64.
McCarthy noted:
“On 2/14, Inovio announced a $65M convertible notes offering, with the option for an additional $20M, expected to close 2/19. Question is, why did INO shares trade down (~20%) on the news? We believe this was a smart and strategic financing that best positions the company to reach multiple catalysts, including the pivotal phase 3 data for VGX-3100, and drive value for investors. Let’s look at key points of why the financing makes sense: ○ Cash runway- $81M in cash at YE18, $70M left on the ATM and now $62.7 (net) (or likely $82.1M, net) and, don’t forget, this company receives a significant amount of non-dilutive funding. The company should have runway into 2021 or longer. ○ Favorable terms- Interest 6.5%, notes mature in 2024, convert is initially at $5.38 (a premium). Conversion is payable in stock, cash or combo at Inovio’s election.”
According to TipRanks.com, McCarthy has 0 stars on 0-5 star ranking scale with an average return of -4.6% and a 32.4% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group Inc, Aridis Pharmaceuticals Inc, and Adial Pharmaceuticals Inc.
Currently, the analyst consensus on Inovio Pharmaceuticals is a Moderate Buy with an average price target of $10.50.
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The company has a one-year high of $6.30 and a one-year low of $3.64. Currently, Inovio Pharmaceuticals has an average volume of 997.8K.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is neutral on the stock. Most recently, in December 2018, Avtar Dhillon, a Director at INO bought 25,000 shares for a total of $50,000.
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Inovio Pharmaceuticals, Inc. engages in the development of active DNA immunotherapies for cancer and infectious diseases. Its portfolio of immune therapies includes SynCon immunotherapies and electroporation delivery systems. The company was founded on June 29, 1983 and is headquartered in Plymouth Meeting, PA.
