TLDR
- Jim Cramer recommended ImmunityBio (IBRX) investors take partial profits after stock jumped 220% year-to-date following FDA meeting
- Company director sold 75,000 shares worth $437,750 in two separate transactions on January 16 and January 20
- FDA cleared regulatory path for ANKTIVA bladder cancer treatment resubmission within 30 days
- Trading volume hit 95.7 million shares, nearly triple the 33.5 million average, as stock reached $6.92
- Wall Street consensus “Moderate Buy” with $12 target despite warnings about momentum-driven rally risks
ImmunityBio stock is on fire. Shares jumped to $6.92 on Wednesday as trading volume exploded to 95.7 million. That’s almost three times the typical daily volume of 33.5 million shares.
The biotech has climbed 220% year-to-date. Jim Cramer weighed in during his show’s lightning round. His message was clear: the stock has moved too far, too fast.
“It’s had a giant run off this FDA meeting, and I really think that you have to take profits in some of that, not all of it, but some of it, because it’s up so big,” Cramer told a caller.
The catalyst? A productive FDA meeting about ANKTIVA, the company’s bladder cancer treatment. ImmunityBio secured a clear regulatory path to resubmit its supplemental Biologics License Application for papillary non-muscle invasive bladder cancer. The company intends to submit additional data within 30 days.
Insider Sells During Rally
Director Christobel Selecky didn’t wait around. On January 16, she sold 50,000 shares at $5.00 each. That sale generated $250,000.
Days later on January 20, Selecky unloaded another 25,000 shares at $7.51 per share. The second transaction brought in $187,750. Her total sales: 75,000 shares worth $437,750.
The timing lines up with the stock’s 12-day winning streak. Much of the rally stems from momentum trading rather than fresh clinical trial results. Short sellers are feeling the pain as the rapid climb forces covering.
Wall Street Divided on Valuation
Analyst opinions vary widely. Piper Sandler boosted its price target from $5 to $7 and maintained an overweight rating. Jefferies increased its target from $8 to $9 with a buy rating.
D. Boral Capital holds a buy rating with a $24 price target. On the flip side, Weiss Ratings maintains a sell rating. The consensus rating lands at “Moderate Buy” with a $12 average target.
HC Wainwright turned more optimistic on long-term prospects. The firm lifted its fiscal 2030 earnings forecast to $0.68 per share. That’s a bullish shift for a company currently losing money.
Financial Snapshot
ImmunityBio reported November quarterly results that beat expectations. The company lost $0.07 per share versus the expected $0.10 loss. Revenue of $32.06 million slightly topped the $31.88 million estimate.
The market cap now stands at $6.82 billion. Institutional ownership remains light at 8.58%. Several firms opened small positions in the third quarter, including Slow Capital and Truist Financial.
The stock trades with a beta of 0.03 and a price-to-earnings ratio of -16.88. Its 50-day moving average sits at $2.54, while the 200-day average is $2.52. The 12-month trading range stretches from $1.83 to $7.98.
Analysts project a $0.92 per share loss for the full fiscal year. The upcoming FDA resubmission creates a near-term catalyst that could spark more volatility in either direction.
