Fate Therapeutics Inc. (NASDAQ: FATE) stock fell -3.19% on Friday to $5.47 against a previous-day closing price of $5.65. With 3.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.13 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $5.80 whereas the lowest price it dropped to was $5.45. The 52-week range on FATE shows that it touched its highest point at $43.14 and its lowest point at $4.02 during that stretch. It currently has a 1-year price target of $17.57. Beta for the stock currently stands at 1.57.
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 FATE was down-trending over the past week, with a drop of -6.66%, but this was down by -57.10% over a month. Three-month performance dropped to -72.21% while six-month performance fell -83.59%. The stock lost -86.08% in the past year, while it has lost -45.79% so far this year. A look at the trailing 12-month EPS for FATE yields -3.05 with Next year EPS estimates of -2.17. For the next quarter, that number is -0.86. This implies an EPS growth rate of -6.40% for this year and 32.40% for next year.
Float and Shares Shorts:
At present, 97.02 million FATE shares are outstanding with a float of 95.67 million shares on hand for trading. On Oct 13, 2022, short shares totaled 21.78 million, which was 22.45% higher than short shares on Sep 14, 2022. In addition to Mr. J. Scott Wolchko as the firm’s Founder, CEO, Pres & Director, Mr. Edward J. Dulac III serves as its Chief Financial Officer.
Through their ownership of 116.22% of FATE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.82% of FATE, in contrast to 50.08% held by mutual funds. Shares owned by individuals account for 21.55%. As the largest shareholder in FATE with 13.34% of the stake, Redmile Group LLC holds 12,957,222 shares worth 12,957,222. A second-largest stockholder of FATE, ARK Investment Management LLC, holds 11,655,833 shares, controlling over 12.00% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in FATE, holding 8,231,312 shares or 8.47% stake. With a 4.31% stake in FATE, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 4,188,039 shares are owned by the mutual fund manager. The BB Biotech AG, which owns about 3.77% of FATE stock, is the second-largest Mutual Fund holder. It holds 3,658,536 shares valued at 36.91 million. Vanguard Total Stock Market Index holds 2.64% of the stake in FATE, owning 2,562,686 shares worth 25.86 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FATE since 24 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FATE analysts setting a high price target of $115.00 and a low target of $4.00, the average target price over the next 12 months is $15.11. Based on these targets, FATE could surge 2002.38% to reach the target high and fall by -26.87% to reach the target low. Reaching the average price target will result in a growth of 176.23% 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. FATE will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$2.89 being high and -$3.66 being low. For FATE, this leads to a yearly average estimate of -$3.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Fate Therapeutics Inc. surprised analysts by $0.03 when it reported -$0.86 EPS against a consensus estimate of -$0.89. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.56 and the low estimate is -$1.12. The average estimate for the next quarter is thus -$0.86.
Summary of Insider Activity:
Insiders traded FATE 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 28 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 505,818 while 227,330 shares were sold.