Ultragenyx Pharmaceutical (NASDAQ:RARE) Shares Gap Down Following Weak Earnings

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $23.50, but opened at $21.54. Ultragenyx Pharmaceutical shares last traded at $21.0370, with a volume of 1,032,862 shares changing hands.

The biopharmaceutical company reported ($1.29) EPS for the quarter, missing the consensus estimate of ($1.20) by ($0.09). Ultragenyx Pharmaceutical had a negative net margin of 85.54% and a negative return on equity of 566.58%. The company had revenue of $207.00 million during the quarter, compared to analyst estimates of $199.60 million. During the same quarter last year, the business earned ($1.39) EPS. The firm’s revenue for the quarter was up 25.5% on a year-over-year basis.

Key Stories Impacting Ultragenyx Pharmaceutical

Here are the key news stories impacting Ultragenyx Pharmaceutical this week:

• Positive Sentiment: Q4 revenue beat and strong year-over-year growth — Ultragenyx reported $207M in Q4 revenue (up ~25% Y/Y) and 2025 total revenue of $673M, driven by Crysvita and Dojolvi sales, showing commercial momentum that supports the franchise. Ultragenyx Q4 Loss Wider Than Expected, Revenues Increase Y/Y
• Positive Sentiment: Pipeline upside remains a near-term catalyst — management highlighted upcoming potential product launches and an important gene‑therapy data readout that could materially accelerate commercial revenue if successful. Why Is Ultragenyx Stock Sinking Friday?
• Neutral Sentiment: Some analysts still rate RARE favorably — the stock carries an average analyst rating around “Moderate Buy,” which could temper further downside if pipeline readouts stay on track. Ultragenyx Receives Average Rating of “Moderate Buy”
• Negative Sentiment: EPS miss and weaker guidance — Q4 EPS missed estimates (loss of $1.29 vs. -$1.20 expected) and FY2026 revenue guidance ($730M–$760M) came in below Street forecasts, reducing near-term visibility on profitability. Ultragenyx (RARE) Reports Q4 Loss, Beats Revenue Estimates
• Negative Sentiment: Cost cuts and layoffs announced — management disclosed a strategic restructuring and ~10% workforce reduction as it pushes to reach profitability by 2027, signaling tougher near-term execution and one-time charges. Ultragenyx lays off 10% of workforce as FDA continues to stall gene therapy approval plans
• Negative Sentiment: Multiple securities-class-action notices filed — several law firms have announced class actions and investor alerts covering purchases from Aug 3, 2023 to Dec 26, 2025, creating legal overhang and potential liability/management distraction. RARE Investors Have Opportunity to Lead Ultragenyx Securities Fraud Lawsuit
• Negative Sentiment: Street price-target cuts and sell-side concern — reporters note multiple analyst target reductions and growing clinical/pipeline uncertainty, which pressurizes the stock until clearer clinical or commercial milestones are achieved. RARE stock slumps on multiple Wall Street price target slashes, clinical pipeline uncertainty

Wall Street Analysts Forecast Growth

RARE has been the subject of several research analyst reports. Jefferies Financial Group dropped their price objective on Ultragenyx Pharmaceutical from $114.00 to $63.00 and set a “buy” rating for the company in a research note on Tuesday, December 30th. Wells Fargo & Company dropped their price target on Ultragenyx Pharmaceutical from $65.00 to $45.00 and set an “overweight” rating for the company in a research report on Tuesday, December 30th. Robert W. Baird cut their price target on Ultragenyx Pharmaceutical from $72.00 to $47.00 and set an “outperform” rating for the company in a research note on Tuesday, December 30th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Ultragenyx Pharmaceutical in a research report on Wednesday, January 21st. Finally, Bank of America dropped their target price on shares of Ultragenyx Pharmaceutical from $72.00 to $58.00 and set a “buy” rating for the company in a report on Friday, January 2nd. Sixteen analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $72.29.

Insider Transactions at Ultragenyx Pharmaceutical

In other Ultragenyx Pharmaceutical news, CFO Howard Horn sold 3,081 shares of the company’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $36.38, for a total value of $112,086.78. Following the transaction, the chief financial officer directly owned 95,146 shares in the company, valued at approximately $3,461,411.48. This represents a 3.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last 90 days, insiders have sold 6,227 shares of company stock valued at $187,126. 5.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ultragenyx Pharmaceutical

Several institutional investors and hedge funds have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Ultragenyx Pharmaceutical by 14.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 232,360 shares of the biopharmaceutical company’s stock worth $8,414,000 after acquiring an additional 29,984 shares during the last quarter. KLP Kapitalforvaltning AS lifted its stake in shares of Ultragenyx Pharmaceutical by 8.6% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 17,700 shares of the biopharmaceutical company’s stock worth $644,000 after purchasing an additional 1,400 shares during the period. CWM LLC boosted its holdings in shares of Ultragenyx Pharmaceutical by 1,171.2% during the second quarter. CWM LLC now owns 4,144 shares of the biopharmaceutical company’s stock worth $151,000 after purchasing an additional 3,818 shares during the last quarter. WCM Investment Management LLC boosted its holdings in shares of Ultragenyx Pharmaceutical by 4.1% during the second quarter. WCM Investment Management LLC now owns 210,469 shares of the biopharmaceutical company’s stock worth $7,686,000 after purchasing an additional 8,256 shares during the last quarter. Finally, Nordea Investment Management AB grew its position in shares of Ultragenyx Pharmaceutical by 59.8% in the second quarter. Nordea Investment Management AB now owns 60,176 shares of the biopharmaceutical company’s stock valued at $2,208,000 after purchasing an additional 22,509 shares during the period. Hedge funds and other institutional investors own 97.67% of the company’s stock.

Ultragenyx Pharmaceutical Stock Down 12.7%

The stock has a market capitalization of $1.98 billion, a price-to-earnings ratio of -3.51 and a beta of 0.16. The company has a 50 day moving average of $26.91 and a 200 day moving average of $29.73.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare and ultra-rare genetic disorders. Since its founding in 2010 and headquarters in Novato, California, the company has built expertise in protein replacement therapies, small molecules and gene therapy approaches to address high-unmet medical needs. Ultragenyx applies a precision medicine model, leveraging both in-house research and strategic collaborations to advance its product pipeline from discovery through regulatory approval.

The company’s commercial portfolio includes Crysvita (burosumab-tmyl) for X-linked hypophosphatemia, Mepsevii (vestronidase alfa-vjbk) for mucopolysaccharidosis VII and Dojolvi (triheptanoin) for long-chain fatty acid oxidation disorders.