Fate Therapeutics, Inc. (FATE) Stock: Here’s What’s Happening

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Fate Therapeutics, Inc. (FATE) is making a move up in the market today. The stock, one that is focused on the biotech space, is presently priced at $18.37 after climbing 6.31% so far in today’s session. As it relates to biotechnology stocks, there are a number of aspects that have the ability to cause movement in the market. News is one of the most common reasons for movement. Here are the recent headlines relating to FATE:

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May-08-19 01:11AM Edited Transcript of FATE earnings conference call or presentation 7-May-19 9:00pm GMT
May-07-19 10:41PM Fate Therapeutics, Inc. (FATE) Q1 2019 Earnings Call Transcript
06:15PM Fate Therapeutics (FATE) Reports Q1 Loss, Misses Revenue Estimates
05:07PM Fate Therapeutics: 1Q Earnings Snapshot
04:01PM Fate Therapeutics Reports First Quarter 2019 Financial Results and Highlights Operational Progress

Nonetheless, when making a decision to invest, prospective investors should look into far more than news, especially in the highly speculative biotech space. Here’s what’s going on with Fate Therapeutics, Inc..

Recent Movement Out of FATE

While a move up on a single session, like the move that we’re seeing from Fate Therapeutics, Inc. may cause excitement in some investors, a single session move alone shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always a good idea to look into trends for a period longer than a single trading day. As it relates to FATE, below are the trends that investors have seen:

  • Past Seven Days – Throughout the past 5 trading sessions, FATE has generated a change in value amounting to 11.20%.
  • Past 30 Days – The monthly performance from Fate Therapeutics, Inc. comes to 12.56%.
  • Past Quarter – In the past quarter, the company has generated a return on investment that works out to 24.88%
  • Past Six Months – Throughout the last 6 months, we’ve seen a change that works out to 43.29% from the stock.
  • YTD – Since the the first trading session of this year FATE has resulted in a ROI of 43.18%.
  • Annually – Lastly, throughout the last full year, we’ve seen performance in the amount of 100.55% from FATE. Over this period, the stock has sold at a high price of -3.87% and a low of 112.62%.

Ratios That Are Notable

Digging into a few ratios having to do with a company generally gives prospective traders a view of just how dangerous and/or rewarding a an investment option might be. Below are a few of the most important ratios to look at when digging into FATE.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the price of the stock is headed for declines. In general, biotechnology stocks can carry a higher short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Fate Therapeutics, Inc., the stock’s short ratio is 14.01.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure whether or not a company can cover its debts as they mature with only current assets or quick assets. In the biotech sector, several companies are heavily reliant on the continuation of support from investors, the quick and current ratios can seem damning. However, quite a few good picks in the biotechnology space do have positive quick and current ratios. As far as FATE, the quick and current ratios add up to 6.40 and 6.40 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio equates to 2.25.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re looking into a stock in the biotech industry, this is an important ratio to consider. In this case, the cash to share value ratio is 2.82.

What Analysts Say About Fate Therapeutics, Inc.

Although it’s rarely a smart idea to blindly follow the opinions of analysts, it is a good idea to use their thoughts when validating your own opinions before making investment decisions in the biotechnology space. Here are the most recent moves that we’ve seen from analysts when it comes to FATE.

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Mar-28-19 Initiated SVB Leerink Outperform $20
Jan-03-19 Downgrade Stephens Overweight → Equal-Weight
Nov-05-18 Initiated Jefferies Buy
Aug-01-18 Initiated Citigroup Buy $20
Mar-06-18 Downgrade H.C. Wainwright Buy → Neutral $12

Is Big Money Interested in Fate Therapeutics, Inc.?

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in FATE, here’s what we’re seeing:

  • Institutional Investors – Currently, institutions own 96.10% of FATE. However, it is worth noting that the ownership held by institutions has seen a move of 0.22% in the past quarter.
  • Insiders – as it relates to insiders, insiders of the company currently own 1.00% of the company. Insider ownership of the company has seen a move of -63.46% throughout the last 3 months.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 64.92M shares of Fate Therapeutics, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, FATE has a float of 63.73M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to FATE, the short percent of the float is 15.03%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.19. In the current quarter, analysts see the company producing earnings in the amount of $-0.30. Over the last 5 years, FATE has generated revenue in the amount of $37.30% with earnings coming in at -1.70%. On a quarter over quarter basis, earnings have seen movement of -13.60% and revenue has seen movement of 160.00%.

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