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Why Sarepta Therapeutics Inc (SRPT) Shares Are Surging

Sarepta Therapeutics Inc (NASDAQ:SRPT) shares have popped 4% after Edward Nash of SunTrust upgraded the equity to ‘Buy’ from ‘Hold’ and set a $45 target price. Nash is more optimistic due to his expectation that the long-term pulmonary and cardiac function data presented at the MDA scientific conference on March 19-22 could potentially lead to more Exondys 51 adoption and insurance coverage. After surging sharply last year on the news of accelerated approval of Exondys 51, which would be the first drug for Duchenne muscular dystrophy, Sarepta Therapeutics Inc (NASDAQ:SRPT) shares have languished in part due to relatively low expectations for Exondys 51 sales growth. If the market adoption of Exondys 51 accelerates or insurers pay more for the drug, Sarepta Therapeutics Inc (NASDAQ:SRPT) could have substantial upside ahead.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

In terms of aggregate hedge fund activity, the smart money seemed to be less optimistic in Q4. According to our data, 25 elite funds (out of the 742 we track) had a bullish position in Sarepta Therapeutics Inc (NASDAQ:SRPT) as of the most recent 13-F reporting period, down 7 funds from the previous quarter. In terms of funds trimming their exposure in Q4, Joseph Edelman‘s Perceptive Advisors cut its stake by 19% to 2.77 million shares while Jason Karp‘s Tourbillon Capital Partners trimmed its holdings by 5% to 1.63 million shares.

The Bottom Line

Sarepta Therapeutics Inc (NASDAQ:SRPT) shares have surged higher after SunTrust upgraded the stock. For more reading, check out ‘Bayer Heroin, Coca-Cola’s Cocaine, and Mrs. Winslow’s Soothing Syrup: Is Sugar More Addictive Than Drugs?‘.

Disclosure:None

wavebreakmedia/Shutterstock.com

wavebreakmedia/Shutterstock.com