Seegene plunges 20% under pressure from block deal and lower earnings outlook [Stock Now]

[Financial News]  Seegene shares are plunging more than 20% intraday. The combination of a lower profit outlook following weak third-quarter results and plans for a block deal involving shares held by a related party appears to have sharply dampened investor sentiment.
Despite heightened expectations for shareholder returns through increased dividends, near-term adjustments to earnings expectations and supply pressure are weighing on the share price.
According to the Korea Exchange (KRX), as of 10:12 a.m. on the 9th, Seegene was trading at 24,650 won, down 6,350 won (20.48%) from the previous trading day. The shares opened at 29,000 won and fell as low as 24,700 won intraday. Trading volume was 755,528 shares. The market capitalization stood at around 1.152 trillion won.
The immediate pressure is attributed to a lower earnings outlook and overhang concerns. In a report released that day, Park Jong-hyun, an analyst at Daol Investment & Securities, estimated Seegene's third-quarter revenue at 123.1 billion won and operating profit at 11.6 billion won.
Operating profit is expected to come in 43% below the market consensus. The analysis attributed the pressure on profitability to a lower average selling price (ASP) amid a stronger won, intensifying competition in the PCR market and a reshuffling of the product lineup.
Daol Investment & Securities put its 2027 revenue forecast at 583.9 billion won, 6% below its previous estimate, and cut its operating profit forecast by 20% to 91.7 billion won. It also lowered its target price from 52,000 won to 50,000 won, while maintaining its Buy rating.
A related party's plan to sell 1 million shares in a block deal was also cited as a supply-side concern. Analyst Park, in the report, pointed to the disclosure of the block deal plan and overhang concerns, saying, "A short-term share-price rise is difficult to expect, but the dividend yield is expected to provide downside support." 
Daol Investment & Securities, meanwhile, forecast a dividend of 1,200 won per share for Seegene this year and 1,440 won next year. It said the expected dividend yield next year was 4.6%, making the stock attractive for its dividend. However, in the day's trading, earnings uncertainty and selling pressure are weighing more heavily than the dividend appeal.

[email protected] Kang Jung-mo Reporter