Stocks of Nkarta Inc. (NKTX) are poised to climb above their peers

Nkarta Inc. (NASDAQ: NKTX) stock jumped 7.47% on Friday to $5.32 against a previous-day closing price of $4.95. With 0.86 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.73 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $5.47 whereas the lowest price it dropped to was $4.87. The 52-week range on NKTX shows that it touched its highest point at $20.35 and its lowest point at $4.83 during that stretch. It currently has a 1-year price target of $30.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NKTX was down-trending over the past week, with a drop of -4.66%, but this was down by -14.61% over a month. Three-month performance dropped to -57.84% while six-month performance fell -62.67%. The stock lost -52.54% in the past year, while it has lost -11.19% so far this year. A look at the trailing 12-month EPS for NKTX yields -2.68 with Next year EPS estimates of -2.83. For the next quarter, that number is -0.64. This implies an EPS growth rate of 6.40% for this year and -9.70% for next year.

Float and Shares Shorts:

At present, 48.63 million NKTX shares are outstanding with a float of 45.32 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.87 million, which was 12.06% higher than short shares on Sep 14, 2022. In addition to Mr. Paul J. Hastings as the firm’s CEO, Pres & Director, Dr. Nadir Mahmood Ph.D. serves as its Chief Financial & Bus. Officer.


Institutional Ownership:

Through their ownership of 100.58% of NKTX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.06% of NKTX, in contrast to 23.43% held by mutual funds. Shares owned by individuals account for 17.39%. As the largest shareholder in NKTX with 15.99% of the stake, RA Capital Management LP holds 7,805,129 shares worth 7,805,129. A second-largest stockholder of NKTX, T. Rowe Price Investment Manageme, holds 4,003,344 shares, controlling over 8.20% of the firm’s shares. Deep Track Capital LP is the third largest shareholder in NKTX, holding 2,814,844 shares or 5.77% stake. With a 3.38% stake in NKTX, the T Rowe Price Small Cap Value Fund is the largest stakeholder. A total of 1,648,141 shares are owned by the mutual fund manager. The T Rowe Price Small Cap Stock Fund, which owns about 1.70% of NKTX stock, is the second-largest Mutual Fund holder. It holds 828,652 shares valued at 4.96 million. Vanguard Total Stock Market Index holds 1.63% of the stake in NKTX, owning 793,900 shares worth 4.76 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NKTX since 12 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NKTX analysts setting a high price target of $38.00 and a low target of $25.00, the average target price over the next 12 months is $30.00. Based on these targets, NKTX could surge 614.29% to reach the target high and rise by 369.92% to reach the target low. Reaching the average price target will result in a growth of 463.91% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NKTX will report FY 2022 earnings on 03/15/2024. Analysts have provided yearly estimates in a range of -$2.30 being high and -$2.66 being low. For NKTX, this leads to a yearly average estimate of -$2.57. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Nkarta Inc. surprised analysts by $0.02 when it reported -$0.58 EPS against a consensus estimate of -$0.60. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.52 and the low estimate is -$0.67. The average estimate for the next quarter is thus -$0.62.

Summary of Insider Activity:

Insiders traded NKTX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 3,632,408 while 88,075 shares were sold.

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