Many stocks have been testing new highs in 2020, and one of the most notable is Fate Therapeutics Inc. (FATE). Currently, FATE is trading at $32.72 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $38.56.
To add more color to this target, the company’s high over the last year is $37.24 and the low is $12.59. Over the last 52 weeks, FATE is down -12.14% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, FATE reported a profit of $37.01 million. Fate Therapeutics Inc. also saw revenues increase to $2.52 million. In addition, FATE has free cash flow of -$27.74 million as of 03-2020 The company’s EBITDA came in at -$33.35 million which compares well with its peers.
FATE Return on Equity (ROE) is -52.10%, and its Return on Assets is -38.40%. All told, it is clear that, FATE needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FATE has a short ratio of 10.37 and outstanding shares of 75.89M.
FATE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.79 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.57. Fate Therapeutics Inc. FATE also noted assets of $321.89 million at the end of the last quarter. Investors should also keep an eye on sector updates as FATE has historically followed its peers on positive news.
All told, Fate Therapeutics Inc. FATE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FATE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Fate Therapeutics Inc. FATE is now commanding a market cap of 2.71B and a float of 76.12M. FATE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FATE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in FATE, either long or short, and we have not been compensated for this article.