Fate Therapeutics Inc (NASDAQ: FATE): A Blank Check?

Fate Therapeutics Inc (NASDAQ:FATE) shares, rose in value, with the stock price up by 3.09% to the previous day’s close as strong demand from buyers drove the stock to $7.01.

Actively observing the price movement in the last trading, the stock closed the session at $6.80. The value of beta (5-year monthly) was 1.67. Referring to stock’s 52-week performance, its high was $8.83, and the low was $1.63. On the whole, FATE has fluctuated by -0.99% over the past month.

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With the market capitalization of Fate Therapeutics Inc currently standing at about $695.67 million, investors are eagerly awaiting this quarter’s results, scheduled for May 01, 2024 – May 06, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.49, which is expected to increase to -$0.38 for fiscal year -$1.96 and then to about -$1.81 by fiscal year 2025. Data indicates that the EPS growth is expected to be -19.50% in 2025, while the next year’s EPS growth is forecast to be 7.70%.

According to the average forecast, sales growth in current quarter could jump down -98.10%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $4.2 million, representing a decrease of -93.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that FATE’s technical picture suggests that short-term indicators denote the stock is a 50% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of FATE currently trading nearly -4.68% and 4.09% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 49.42, while the 7-day volatility ratio is showing 7.11% which for the 30-day chart, stands at 8.68%. Furthermore, Fate Therapeutics Inc (FATE)’s beta value is 1.69, and its average true range (ATR) is 0.61.

A comparison of Fate Therapeutics Inc (FATE) with its peers suggests the former has fared considerably weaker in the market. FATE showed an intraday change of 3.09% in last session, and over the past year, it grew by 22.98%%.

Data on historical trading for Fate Therapeutics Inc (NASDAQ:FATE) indicates that the trading volumes over the past 10 days have averaged 2.31 million and over the past 3 months, they’ve averaged 2.94 million. According to company’s latest data on outstanding shares, there are 98.63 million shares outstanding.

Nearly 12.59% of Fate Therapeutics Inc’s shares belong to company insiders and institutional investors own 103.91% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 13.16 million shares as on Mar 15, 2024, resulting in a short ratio of 4.7. According to the data, the short interest in Fate Therapeutics Inc (FATE) stood at 13.26% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 13.31 million. The stock has risen by 87.43% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the FATE stock heading into the next quarter.