Infinity Pharmaceuticals Inc. (NASDAQ:INFI)
Shares of Infinity Pharmaceuticals Inc. (NASDAQ:INFI) received coverage in the following forms in 2016 – one initiated, two reiterations, and seven downgrades. One of the firms that had an “Outperform” rating on INFI shares with a $55 price target in 2013 lowered its rating to “Neutral” in June of 2016 and lowered its price target to $ $2. Another investment firm, in the space of 90 days, went from initiating coverage at “Outperform” with a $15 price target to a “Market Perform” rating with a $2 price target.
Today is the eleventh day in a row that Infinity Pharmaceuticals Inc. (NASDAQ:INFI) will be closing below the day’s opening price. It will be the eighth day in a row that INFI shares close lower than the preceding day. Interestingly, around one week ago analysts were speculating that INFI would announce higher earnings than expected. The lower high and lower lows have sent INFI’s relative strength index into “oversold” territory with a figure of 25.
Cambridge, MA-based Infinity Pharmaceuticals Inc. (NASDAQ:INFI) is a clinical-stage biopharmaceutical company that develops novel treatments for cancers. Infinity’s lead, and sole, product candidate is IPI-549, an oral immuno-oncology development candidate that selectively inhibits PI3K-gamma. Preclinical data in multiple solid tumor models have demonstrated that IPI-549 targets immune cells and alters the immune-suppressive microenvironment, promoting an anti-tumor immune response that leads to tumor growth inhibition. IPI-549 is just in its Phase 1 study.
BVF Partners L.P. is an investor in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). BVF is known as being an activist investor and have taken some eyebrow raising moves to install their choices for board members if the company fails to perform to BVF’s satisfaction. Their apparent lack of overt management influencing and their continual purchasing of INFI shares in 2016 could be seen as a vote of confidence by a knowledgeable investment group that has never shied away from taking aggressive actions to protect their capital.
One area that shareholders of Infinity Pharmaceuticals Inc. (NASDAQ:INFI) have not had to worry about is dilution. For an early clinical-stage biotechnology firm, Infinity has gone against the trend of raising capital through share issuance which dilutes shareholder equity. In 2013 there were 47.94 million shares outstanding and that number grew to just 49.61 million by the end of 2016.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.