MacroGenics, Inc. (MGNX): Is This Insider Trading a Scary Sign?

After opening Wednesday at around $19.73, MacroGenics, Inc. (NASDAQ:MGNX) stock surged to as high as $20.3. It then made a downturn, dipping as low as $19.28. Although the stock bounced a bit into the close, it finished the day at $20.18, up 0.54 points or 2.75 percent on the day. The final volume for the day was 3.459 million, which was more than its average volume. The firm is left with a market cap of $971 million and now has 48.12 million shares outstanding. MacroGenics, Inc. (MGNX) stock has lost -5.57 percent of market value in 21 trading days.

MGNX stock has a trailing 3-year beta of 3.01, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$4.23 a share in the trailing twelve months. The stock’s value has surged 58.9 percent year to date (YTD) against a decline of -35.22 percent in 12 month’s time. The company’s shares still trade -37.56 percent away from its 1-year high of $32.32 and 104.46 percent up from 52-week low of $9.87. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

MacroGenics, Inc. (MGNX) will probably climb 73.44 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $50-month high price target. This represents a whopping 147.77 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $36, which represents a return potential of 78.39 percent when compared to the closing price of the stock of $20.18 on Wednesday, March 13. The lowest price target for the stock is $23 — slightly more than 13.97 percent from MGNX’s current share price.

History has shown that shares in MacroGenics, Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. Investors will get their next glimpse of MGNX’s Q1 earnings on May 08. Analysts are forecasting revenue to climb 193.3 percent to $13.77M in the fiscal first quarter, while earnings are seen soaring by nearly -35.82 percent to -$0.86 per share. It earned -$1.06 per share, worse than the -$1.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $15.79M, better than the $10.67M analysts expected. Earnings are estimated to increase by -670.5 percent this year, -5.2 percent next year and continue to increase by 0 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $19.54. Below this, the next support is placed in the zone of $18.9. Till the time, the MGNX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.6 on daily chart, which may remain a cause for concern. If the price breaks below $18.9 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.56 mark may result into a pull-back move towards $20.94 level.

Further, it is sporting a 16.16 on the Price-to-Sales ratio. Compare this with the industry average P/S of 47.