Here’s Why Vascular Biogenics Ltd (VBLT) Stock Is Slumping Today


Shares of Vascular Biogenics Ltd (NASDAQ:VBLT) slumped on Friday, falling 18% as of 10:30 a.m. EDT, following the announcement of a dilutive equity offering.

The Israeli biopharmaceutical firm priced 2,500,000 ordinary shares at $7.5 apiece, which was well below the $9 per share where the stock had been trading yesterday afternoon. In addition to that deep discount, the offering represents nearly 11% dilution for existing shareholders.

That said, the offering did raise $39.2 million, which will allow the company to advance its clinical programs, product development, and pay for working capital and other general corporate purposes.

On the ratings front, Vascular stock has been the subject of a number of recent research reports. In a report issued on November 14, Piper Jaffray analyst Charles Duncan reiterated a Buy rating on VBLT, with a price target of $13, which implies an upside of 73% from current levels. Similiary, on November 7, H.C. Wainwright’s Swayampakula Ramakanth reiterated a Buy rating on the stock and has a price target of $11.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Charles Duncan and Swayampakula Ramakanth have a yearly average return of 2.4% and a loss of 4.7% respectively. Duncan has a success rate of 44% and is ranked #1678 out of 4706 analysts, while Ramakanth has a success rate of 35% and is ranked #4437.

Vascular is in the clinical-stage biopharmaceutical company, which engages in the development and commercialization of treatments for cancer and immune-inflammatory diseases. It offers different programs for cancer and inflammatory disease patients such as vascular targeting system and Lecinoxoids.

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