Mustang Bio Inc. (NASDAQ: MBIO) – Suitable For Long Term Buy?

GLBE Stock
GLBE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Mustang Bio Inc. (NASDAQ:MBIO). The institutional investor has increased its shareholding in the Healthcare company by 14.50% to 1.51 million shares with purchase of 0.19 million shares. This fresh investment now brings its stake to 2.86% valued currently at $4.67 million. In addition, JPMorgan Investment Management, I.. raised its holdings by 1.01 million to 1.01 million shares. And JPMorgan Chase Bank, NA (Investme.. has lifted its position by 10,127.50% or 0.9 million shares – to 0.91 million shares.

With over 1.76 million Mustang Bio Inc. (MBIO) shares trading Monday and a closing price of $3.27 on the day, the dollar volume was approximately $5.77 million. The shares have shown a negative weekly performance of -0.61% and its price on 08/31/20 gained nearly 0.93%. Currently, there are 45.02M common shares owned by the public and among those 41.80M 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: 3 analysts who have offered their price forecasts for MBIO have a consensus price objective of $9.00. The analysts have set the share’s price value over the next 12 months at a high of $13.00 and a low of $7.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Mustang Bio Inc. stock is 1.70 for the next 12 months. But an upside of 74.85% will see the stock hit the forecast high price target while mean target price for the stock is $7.00.

Insiders at the company have transacted a total of 12 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 12 of these insider trades were purchases, accounting for 580,675 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

The top 3 mutual fund holders in Mustang Bio Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and JPMorgan Small Cap Core Fund. Vanguard Total Stock Market Index owns 0.96 million shares of the company’s stock, all valued at over $2.95 million. iShares Russell 2000 ETF sold 25704.0 shares to see its total holdings shrink to 0.55 million shares valued at over $1.7 million and representing 1.04% of the shares outstanding. JPMorgan Small Cap Core Fund bought 0.47 million shares to bring its total holdings to over 0.47 million shares at a value of $1.44 million. JPMorgan Small Cap Core Fund now owns shares totaling to 0.88% of the shares outstanding.

Shares of Mustang Bio Inc. (NASDAQ: MBIO) opened at $3.314, up $0.07 from a prior closing price of $3.24. However, the script later closed the day at $3.27, up 0.93%. The company’s stock has a 5-day price change of -0.61% and -13.26% over the past three months. MBIO shares are trading -19.85% year to date (YTD), with the 12-month market performance down to -17.01% lower. It has a 12-month low price of $1.78 and touched a high of $4.85 over the same period. Currently, 1.76 million shares have been traded, compared to an average intraday trading volume of 1.13 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.51%, 0.75%, and 0.35% respectively.

Institutional ownership of Mustang Bio Inc. (NASDAQ: MBIO) shares accounts for 26.30% of the company’s 45.02M shares outstanding. Mutual fund holders own 21.24%, while other institutional holders and individual stakeholders account for 9.03% and 18.28% respectively.

It has a market capitalization of $184.98M. The earnings-per-share (ttm) stands at -$1.27. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.50% over the week and 6.51% over the month.

Analysts forecast that Mustang Bio Inc. (MBIO) will achieve an EPS of -$0.24 for the current quarter, -$0.25 for the next quarter and -$1 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.25 while analysts give the company a high EPS estimate of -$0.23. Comparatively, EPS for the current quarter was -$0.25 a year ago. Earnings per share for the fiscal year are expected to decrease by -13.10%, and 8.30% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate Mustang Bio Inc. (MBIO) as a “Strong Buy” at a consensus score of 1.70. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 0 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the MBIO, a number of firms have released research notes about the stock. Cantor Fitzgerald stated their Overweight rating for the stock in a research note on November 20, 2019, with the firm’s price target at $7. H.C. Wainwright coverage for the Mustang Bio Inc. (MBIO) stock in a research note released on August 13, 2019 offered a Buy rating with a price target of $7. Cantor Fitzgerald was of a view on June 21, 2019 that the stock is Overweight, while Oppenheimer gave the stock Outperform rating on December 21, 2017, issuing a price target of $18.


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