Relay Therapeutics (NASDAQ:RLAY) Shares Gap Up Following Analyst Upgrade

Relay Therapeutics, Inc. (NASDAQ:RLAY)’s share price gapped up before the market opened on Tuesday after JonesTrading upgraded the stock from a hold rating to a strong-buy rating. The stock had previously closed at $12.10, but opened at $13.00. Relay Therapeutics shares last traded at $12.9860, with a volume of 5,361,414 shares changing hands.

Several other brokerages also recently issued reports on RLAY. The Goldman Sachs Group raised their price target on Relay Therapeutics from $13.00 to $22.00 and gave the company a “buy” rating in a report on Tuesday, April 28th. UBS Group set a $26.00 price objective on Relay Therapeutics in a research report on Tuesday. Wall Street Zen cut Relay Therapeutics from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Guggenheim increased their price objective on Relay Therapeutics from $15.00 to $22.00 and gave the stock a “buy” rating in a research report on Friday, March 13th. Finally, Barclays increased their price objective on Relay Therapeutics from $21.00 to $27.00 and gave the stock an “overweight” rating in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $22.60.

Insiders Place Their Bets

In other Relay Therapeutics news, CFO Thomas Catinazzo sold 17,717 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $12.86, for a total transaction of $227,840.62. Following the transaction, the chief financial officer owned 195,178 shares in the company, valued at $2,509,989.08. This trade represents a 8.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last quarter, insiders sold 40,449 shares of company stock worth $532,889. 5.04% of the stock is owned by company insiders.

Trending Headlines about Relay Therapeutics

Here are the key news stories impacting Relay Therapeutics this week:

• Positive Sentiment: Relay reported encouraging Phase 2 ReInspire data for zovegalisib in PIK3CA-driven vascular anomalies, including a 60% volumetric response rate across doses, broad symptom improvement, and a tolerability profile that could support chronic use. GlobeNewswire release on initial clinical data
• Positive Sentiment: Reuters and other market coverage highlighted that the mid-stage results showed the experimental treatment can shrink vascular malformations and improve symptoms, reinforcing investor optimism around the drug’s commercial potential. Reuters article
• Positive Sentiment: Analysts responded favorably, with Citizens JMP raising its price target to $21 and Raymond James lifting its target to $26, while both kept bullish ratings. Analyst price target updates via Benzinga
• Neutral Sentiment: Unusually heavy options activity showed traders positioning for more volatility, with a sharp rise in put volume suggesting some caution even as the stock rallied.
• Negative Sentiment: Relay announced a proposed $175 million common stock offering, which can pressure the share price in the near term due to dilution concerns, even though it also strengthens the balance sheet. GlobeNewswire offering announcement

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Commodore Capital LP increased its position in shares of Relay Therapeutics by 27.3% in the third quarter. Commodore Capital LP now owns 17,000,000 shares of the company’s stock worth $88,740,000 after purchasing an additional 3,650,000 shares during the period. Casdin Capital LLC increased its position in shares of Relay Therapeutics by 14.7% in the fourth quarter. Casdin Capital LLC now owns 13,003,574 shares of the company’s stock worth $110,010,000 after purchasing an additional 1,662,193 shares during the period. Vanguard Group Inc. increased its position in shares of Relay Therapeutics by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 9,691,445 shares of the company’s stock worth $81,990,000 after purchasing an additional 295,701 shares during the period. Bellevue Group AG increased its position in shares of Relay Therapeutics by 1.4% in the third quarter. Bellevue Group AG now owns 8,345,610 shares of the company’s stock worth $43,564,000 after purchasing an additional 114,740 shares during the period. Finally, State Street Corp increased its position in shares of Relay Therapeutics by 26.8% in the fourth quarter. State Street Corp now owns 6,426,111 shares of the company’s stock worth $54,365,000 after purchasing an additional 1,360,121 shares during the period. Institutional investors own 96.98% of the company’s stock.

Relay Therapeutics Price Performance

The company has a market cap of $2.49 billion, a P/E ratio of -8.29 and a beta of 1.74. The stock has a 50-day moving average of $12.62 and a 200 day moving average of $9.66.

Relay Therapeutics (NASDAQ:RLAY) last issued its quarterly earnings results on Tuesday, May 5th. The company reported ($0.41) EPS for the quarter, missing analysts’ consensus estimates of ($0.35) by ($0.06). The company had revenue of $3.00 million during the quarter, compared to the consensus estimate of $5.58 million. Sell-side analysts predict that Relay Therapeutics, Inc. will post -1.6 EPS for the current year.

About Relay Therapeutics

Relay Therapeutics, Inc is a clinical-stage biotechnology company focused on the discovery and development of precision therapies for oncology. Headquartered in Cambridge, Massachusetts, the company was founded in 2016 with the goal of targeting dynamic protein motion using an integrated scientific platform. Relay Therapeutics leverages computational modeling, structural biology, and experimental validation to identify small-molecule drug candidates that modulate the behavior of disease-associated proteins.

The company’s core business activity centers on its proprietary drug-discovery engine, which combines high-performance computing—including molecular dynamics simulations—with advanced experimental techniques such as cryo-electron microscopy and biophysical screening.