Is Now the Time to Invest in Magenta Therapeutics Inc. (NASDAQ:MGTA)?

Is Now the Time to Invest in Magenta Therapeutics Inc. (NASDAQ:MGTA)?


The Magenta Therapeutics Inc. (MGTA) shares are trading at higher $8.70 and the avg recommendation for the stock is Strong Buy.

To add more color to this target, the company’s high over the last year is $16.19 and the low is $5.76. Over the last 52 weeks, MGTA is down -46.26% while the S&P 500 is up 1.54%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, MGTA reported a profit of $1.23 million. Magenta Therapeutics Inc. also saw revenues increase to $21.24 million. In addition, MGTA has free cash flow of -$16.79 million as of 03-2020 The company’s EBITDA came in at -$20.75 million which compares well with its peers.

MGTA Return on Equity (ROE) is -53.90%, and its Return on Assets is -48.30%. All told, it is clear that, MGTA 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. MGTA has a short ratio of 3.96 and outstanding shares of 39.36M.

Company Outlook

MGTA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.68 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.13. Magenta Therapeutics Inc. MGTA also noted assets of $144.44 million at the end of the last quarter. Investors should also keep an eye on sector updates as MGTA has historically followed its peers on positive news.

All told, Magenta Therapeutics Inc. MGTA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MGTA 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.

Magenta Therapeutics Inc. MGTA is now commanding a market cap of 398.98M and a float of 21.93M. MGTA 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 MGTA 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 MGTA, either long or short, and we have not been compensated for this article.