Institutional support remains strong in February, with 134 investors increasing positions and 61 initiating new stakes.
- Wall Street is expecting revenue of $390.95 million and an EBITDA loss of $144.34 million.
- Bear positioning rose to a six-month high, with short interest climbing from 20.3% to 21.2% after a Regenxbio patent ruling.
- BlackRock remained the largest holder, reporting 14.28 million shares, an increase of 1.08 million shares, valued at about $307.4 million as of Dec. 31, 2025.
Shares of Sarepta Therapeutics, Inc. (SRPT) snapped a five-session winning streak on Monday as investors repositioned ahead of the company’s fourth-quarter (Q4) earnings report, with institutional flows and bear positioning drawing fresh attention.
SRPT stock slid 4% to $18.12 in Monday’s regular session.
SRPT: Wall Street Braces For Weaker Q4 Print
According to Koyfin estimates, Sarepta is expected to report Q4 revenue of $390.95 million, down from $399.36 million in the prior quarter.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to widen to a loss of $144.34 million, compared with a loss of $91.17 million in the previous quarter. Earnings before interest and taxes (EBIT) are expected at a loss of $136.41 million, versus $103.39 million previously. Adjusted earnings per share are forecast at a loss of $0.77, compared with a loss of $0.13 in the prior quarter.
The results come as Sarepta continues to navigate regulatory scrutiny and legal uncertainty tied to its Duchenne muscular dystrophy gene therapy, Elevidys.
Koyfin data show a 12-month average price target of $21.43, implying a 14% upside from current levels. Among 26 analysts covering Sarepta, seven rate the stock ‘Buy’, fourteen rate it ‘Hold’, three rate it ‘Sell’, and two rate it ‘Strong Sell’.
Heavy Institutional Support For SRPT In February
February institutional filings tracked by Quiver Quantitative show that several of the world’s largest asset managers continued to hold or add sizeable positions in Sarepta.
Among recently reported institutional moves tracked by Quiver, 134 investors increased positions, 61 initiated new positions, and 44 held positions steady. On the other hand, 93 investors reduced positions, while 41 fully exited their holdings.
BlackRock remained the largest holder, reporting 14.28 million shares, an increase of 1.08 million shares, valued at about $307.4 million as of Dec. 31, 2025. Vanguard Group followed with 11.81 million shares, adding 993,283 shares for a reported value of $254.2 million. State Street Corp increased its stake by 1.29 million shares to 6.60 million shares, a 24% jump, with a market value of $142 million.
AQR Capital Management stood out among active managers, lifting its position to 7.8 million shares after adding 6.39 million shares, a 455% increase, valued at $167.8 million. Quant-focused firms also added exposure, with Two Sigma Investments raising its stake by 303,691 shares to 2.44 million, while Two Sigma Advisors added 113,300 shares to reach 2.07 million. Meanwhile, Erste Asset Management increased its holdings to 2.73 million shares, and Aberdeen Group boosted its position by 268,829 shares to 2.25 million, a 14% increase.
Morgan Stanley, D. E. Shaw Trim SRPT Stakes
At the same time, several high-profile firms reduced exposure. Morgan Stanley trimmed its stake by 35,724 shares to 1.91 million, while D. E. Shaw & Co. cut its position by 466,635 shares to 1.54 million, a 23% reduction. Renaissance Technologies made the sharpest move, slashing its holdings by 1.49 million shares, or 56%, to 1.16 million. Connor, Clark & Lunn Investment Management also reduced exposure, reporting 1.08 million shares, down 662,289 shares.
Bear Positioning Climbs As Legal And Regulatory Risks Resurface
Short interest in Sarepta rose from 20.3% at the beginning of February to 21.2% currently after the U.S. Court of Appeals for the Federal Circuit reinstated the patent lawsuit brought by Regenxbio over Elevidys, marking the highest level since August 2025.
Regenxbio, which licenses the disputed gene therapy patent from the University of Pennsylvania, is seeking more than $900 million in damages, according to Reuters, reviving legal uncertainty around Elevidys.
Short interest last peaked at 21.4% in August 2025 amid a cluster of negative developments, including Sarepta’s exit from its $325 million Arrowhead investment at a 31% loss, heightened regulatory scrutiny following Vinay Prasad’s return to the FDA as head of the Center for Biologics Evaluation and Research, and balance sheet concerns that led the company to restructure roughly $700 million of convertible notes into new 4.875% notes due 2030.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for SRPT was ‘bearish’ amid a 1,533% surge in 24-hour message volume.
One user said, “24% short while institutions are offloading their short position. I am guessing today we may touch $20.”
Another user said, “Not how I expected today to go. Thought it would run into earnings. This is very unfortunate.”
SRPT stock has declined 16% year to date.
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