Viking Therapeutics (VKTX, Financial) is experiencing a significant increase in options trading activity as it approaches its earnings announcement. The pre-earnings options volume is 1.8 times higher than usual, with a notable skew towards call options, which outnumber put options by a ratio of 19 to 4.
This heightened activity coincides with an implied volatility that points to an anticipated share price movement of approximately 8.5%, or $2.24, once the company releases its earnings results. This projected fluctuation exceeds the median movement of 7.8% observed over the past eight earnings periods.
Such market behavior indicates that traders are preparing for a potentially significant reaction in Viking Therapeutics' stock price post-earnings, reflecting the uncertainty and expectations surrounding the company's financial performance announcement.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Viking Therapeutics Inc (VKTX, Financial) is $93.13 with a high estimate of $125.00 and a low estimate of $30.00. The average target implies an upside of 256.63% from the current price of $26.12. More detailed estimate data can be found on the Viking Therapeutics Inc (VKTX) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Viking Therapeutics Inc's (VKTX, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Key Business Developments
Release Date: February 05, 2025
- Research and Development Expenses (Q4 2024): $31 million, up from $20.5 million in Q4 2023.
- General and Administrative Expenses (Q4 2024): $15.3 million, up from $8.8 million in Q4 2023.
- Net Loss (Q4 2024): $35.4 million or $0.32 per share, compared to $24.6 million or $0.25 per share in Q4 2023.
- Research and Development Expenses (Full Year 2024): $101.6 million, up from $63.8 million in 2023.
- General and Administrative Expenses (Full Year 2024): $49.3 million, up from $37 million in 2023.
- Net Loss (Full Year 2024): $110 million or $1.01 per share, compared to $85.9 million or $0.91 per share in 2023.
- Cash, Cash Equivalents, and Short-term Investments (End of 2024): $903 million, up from $362 million at the end of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viking Therapeutics Inc (VKTX, Financial) reported successful results from four different studies across its pipeline in 2024, including positive data from the VK2735 subcutaneous and oral tablet programs for obesity.
- The VK2809 program for the treatment of MASH and fibrosis achieved its primary, secondary, and exploratory endpoints, showing significant reductions in liver fat and improvements in MASH resolution rate and fibrosis.
- The company announced positive results from a Phase 1b clinical trial of VK0214 for X-linked adrenoleukodystrophy, demonstrating safety, tolerability, and significant reductions in plasma levels of very long chain fatty acids.
- Viking Therapeutics Inc (VKTX) closed a successful public offering of common stock, raising over $630 million, which bolstered its financial position with over $900 million in cash by the end of 2024.
- The company plans to initiate Phase 3 trials for VK2735 in obesity in the second quarter of 2025, indicating a clear path forward for its lead program.
Negative Points
- Viking Therapeutics Inc (VKTX) reported a net loss of $110 million for the year ended December 31, 2024, an increase from the $85.9 million loss in 2023, primarily due to increased research and development and administrative expenses.
- Research and development expenses rose significantly to $101.6 million in 2024 from $63.8 million in 2023, driven by increased manufacturing costs for drug candidates and stock-based compensation.
- General and administrative expenses also increased to $49.3 million in 2024 from $37 million in 2023, due to higher costs related to stock-based compensation, salaries, and professional fees.
- The company faces logistical challenges in manufacturing and preparing clinical materials for its Phase 3 trials, which could impact timelines.
- There is uncertainty regarding the recruitment timeline for the Phase 3 obesity studies, as the company has not yet provided guidance on patient enrollment duration.
