Do Kura Oncology Inc. (NASDAQ: KURA) Fit In A Value Investing Philosophy?


    Fidelity Management & Research Co.. recently announced the acquisition of new stake in Kura Oncology Inc. (NASDAQ:KURA). The institutional investor has increased its shareholding in the Healthcare company by 18.64% to 8.08 million shares with purchase of 1.27 million shares. This fresh investment now brings its stake to 14.36% valued currently at $132.91 million. In addition, Ecor1 Capital LLC raised its holdings by 1.1 million to 4.61 million shares. And BlackRock Fund Advisors has lifted its position by 45.13% or 1.22 million shares – to 3.92 million shares.

    With over 1.52 million Kura Oncology Inc. (KURA) shares trading Tuesday and a closing price of $23.47 on the day, the dollar volume was approximately $35.66 million. The shares have shown a positive weekly performance of 6.97% and its price on 08/25/20 gained nearly 6.78%. Currently, there are 51.63M common shares owned by the public and among those 49.07M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for KURA have a consensus price objective of $24.63. The analysts have set the share’s price value over the next 12 months at a high of $28.00 and a low of $22.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kura Oncology Inc. stock is 1.80 for the next 12 months. The average price target is 4.71% above its last price level and an upside to the estimated low will see the stock lose -6.68% over that period. But an upside of 16.18% will see the stock hit the forecast high price target while mean target price for the stock is $24.50.

    Insiders at the company have transacted a total of 13 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 7 of these insider trades were purchases, accounting for 86,574 shares. Insider sales of the common stock occurred on 6 occasions, with total insider shares sold totaling 111,376 shares.

    The top 3 mutual fund holders in Kura Oncology Inc. are Fidelity Select Port. – Biotechno, Carillon Eagle Small Cap Growth F, and Vanguard Total Stock Market Index. Fidelity Select Port. – Biotechno owns 2.26 million shares of the company’s stock, all valued at over $37.09 million. The company sold -0.17 million shares recently to bring their total holdings to about 4.01% of the shares outstanding. Vanguard Total Stock Market Index sold 2156.0 shares to bring its total holdings to over 1.47 million shares at a value of $24.11 million. Vanguard Total Stock Market Index now owns shares totaling to 2.61% of the shares outstanding.

    Shares of Kura Oncology Inc. (NASDAQ: KURA) opened at $22.00, up $0.02 from a prior closing price of $21.98. However, the script later closed the day at $23.47, up 6.78%. The company’s stock has a 5-day price change of 6.97% and 32.08% over the past three months. KURA shares are trading 70.69% year to date (YTD), with the 12-month market performance up to 50.16% higher. It has a 12-month low price of $6.35 and touched a high of $22.26 over the same period. Currently, 1.52 million shares have been traded, compared to an average intraday trading volume of 545.40K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 19.50%, 27.74%, and 63.01% respectively.

    Institutional ownership of Kura Oncology Inc. (NASDAQ: KURA) shares accounts for 93.80% of the company’s 51.63M shares outstanding. Mutual fund holders own 40.91%, while other institutional holders and individual stakeholders account for 48.82% and 15.84% respectively.

    It has a market capitalization of $1.34B and a beta (3y monthly) value of 2.29. The earnings-per-share (ttm) stands at -$1.58. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.90% over the week and 5.36% over the month.

    Analysts forecast that Kura Oncology Inc. (KURA) will achieve an EPS of -$0.4 for the current quarter, -$0.44 for the next quarter and -$1.89 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.5 while analysts give the company a high EPS estimate of -$0.3. Comparatively, EPS for the current quarter was -$0.36 a year ago. Earnings per share for the fiscal year are expected to increase by 12.40%, and -14.50% over the next financial year. EPS should grow at an annualized rate of 19.93% over the next five years, compared to -42.90% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Kura Oncology Inc. (KURA) as a “Strong Buy” at a consensus score of 1.80. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 0 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the KURA, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on July 07, 2020, with the firm’s price target at $27. Barclays coverage for the Kura Oncology Inc. (KURA) stock in a research note released on May 05, 2020 offered a Overweight rating with a price target of $24. Deutsche Bank was of a view on July 18, 2019 that the stock is Buy, while Piper Jaffray gave the stock Overweight rating on November 09, 2018, issuing a price target of. H.C. Wainwright on their part issued Buy rating on August 01, 2018.


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