Reviewing The Case For Seres Therapeutics Inc. (MCRB) Going Higher


ARK Investment Management LLC recently announced the acquisition of new stake in Seres Therapeutics Inc. (NASDAQ:MCRB). The institutional investor has increased its shareholding in the Healthcare company by 44.31% to 12.48 million shares with purchase of 3.83 million shares. This fresh investment now brings its stake to 16.36% valued currently at $46.67 million. In addition, BlackRock Fund Advisors raised its holdings by 0.44 million to 3.82 million shares. And The Vanguard Group, Inc. has lifted its position by 4.08% or 84125.0 shares – to 2.14 million shares.

With over 1.55 million Seres Therapeutics Inc. (MCRB) shares trading Monday and a closing price of $26.49 on the day, the dollar volume was approximately $41.13 million. The shares have shown a positive weekly performance of 15.12% and its price on 08/31/20 gained nearly 8.21%. Currently, there are 73.31M common shares owned by the public and among those 50.71M 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: 8 analysts who have offered their price forecasts for MCRB have a consensus price objective of $33.50. The analysts have set the share’s price value over the next 12 months at a high of $41.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Seres Therapeutics Inc. stock is 1.70 for the next 12 months. The average price target is 14.35% above its last price level and an upside to the estimated low will see the stock lose -10.37% over that period. But an upside of 35.39% will see the stock hit the forecast high price target while mean target price for the stock is $32.50.

Insiders at the company have transacted a total of 6 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 5 of these insider trades were purchases, accounting for 77,000 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 3,400 shares.

The top 3 mutual fund holders in Seres Therapeutics Inc. are ARK Innovation ETF, Nikko AM Global Umbrella Fund – A, and ARK Genomic Revolution ETF. ARK Innovation ETF owns 8.72 million shares of the company’s stock, all valued at over $32.61 million. The company bought an additional 93143.0 shares recently to bring their total holdings to about 11.43% of the shares outstanding. Nikko AM Global Umbrella Fund – A bought 5.38 million shares to see its total holdings expand to 5.43 million shares valued at over $20.32 million and representing 7.13% of the shares outstanding. ARK Genomic Revolution ETF sold 39807.0 shares to bring its total holdings to over 3.49 million shares at a value of $13.05 million. ARK Genomic Revolution ETF now owns shares totaling to 4.58% of the shares outstanding.

Shares of Seres Therapeutics Inc. (NASDAQ: MCRB) opened at $25.24, up $0.76 from a prior closing price of $24.48. However, the script later closed the day at $26.49, up 8.21%. The company’s stock has a 5-day price change of 15.12% and 389.65% over the past three months. MCRB shares are trading 667.83% year to date (YTD), with the 12-month market performance up to 557.32% higher. It has a 12-month low price of $2.52 and touched a high of $33.00 over the same period. Currently, 1.55 million shares have been traded, compared to an average intraday trading volume of 2.85 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 35.75%, 149.99%, and 378.82% respectively.

Institutional ownership of Seres Therapeutics Inc. (NASDAQ: MCRB) shares accounts for 73.90% of the company’s 73.31M shares outstanding. Mutual fund holders own 38.15%, while other institutional holders and individual stakeholders account for 40.72% and 15.50% respectively.

It has a market capitalization of $2.34B and a beta (3y monthly) value of 3.99. The earnings-per-share (ttm) stands at -$1.07. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.97% over the week and 14.35% over the month.

Analysts forecast that Seres Therapeutics Inc. (MCRB) will achieve an EPS of -$0.26 for the current quarter, -$0.26 for the next quarter and -$1.32 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.35 while analysts give the company a high EPS estimate of -$0.2. Comparatively, EPS for the current quarter was -$0.23 a year ago. Earnings per share for the fiscal year are expected to increase by 48.90%, and -36.10% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Seres Therapeutics Inc. (MCRB) as a “Strong Buy” at a consensus score of 1.70. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 1 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the MCRB, a number of firms have released research notes about the stock. Piper Sandler stated their Overweight rating for the stock in a research note on August 18, 2020, with the firm’s price target at $40. Jefferies coverage for the Seres Therapeutics Inc. (MCRB) stock in a research note released on August 11, 2020 offered a Buy rating with a price target of $29. H.C. Wainwright was of a view on August 11, 2020 that the stock is Buy, while Jefferies gave the stock Hold rating on April 30, 2019, issuing a price target of $7. Chardan Capital Markets on their part issued Buy rating on October 22, 2018.


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