Johnson & Johnson Makes New $9.12 Billion Investment in Fate Therapeutics, Inc. $FATE

Key Points

• Johnson & Johnson acquired 3.38 million shares of Fate Therapeutics, representing about 2.9% of the company and roughly 1.1% of J&J’s portfolio. The filing’s reported $9.12 billion valuation appears inconsistent with FATE’s share price and market capitalization.
• Fate Therapeutics shares rose 2.0% to $2.57, while the company reported quarterly revenue of $2.08 million and an EPS loss of $0.25, in line with analyst expectations. Analysts’ average rating is “Hold,” with a consensus price target of $5.90.
• Institutional ownership remains high at 97.54%, with several funds increasing their positions. The company continues developing iPSC-derived cellular immunotherapies for cancer and immune disorders.

Johnson & Johnson purchased a new stake in Fate Therapeutics, Inc. (NASDAQ:FATE - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 3,379,064 shares of the biopharmaceutical company's stock, valued at approximately $9,123,473,000. Fate Therapeutics accounts for approximately 1.1% of Johnson & Johnson's holdings, making the stock its 10th largest holding. Johnson & Johnson owned approximately 2.90% of Fate Therapeutics as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in FATE. Comerica Bank increased its position in shares of Fate Therapeutics by 55,698.6% during the first quarter. Comerica Bank now owns 82,024 shares of the biopharmaceutical company's stock worth $65,000 after acquiring an additional 81,877 shares during the period. AQR Capital Management LLC boosted its holdings in Fate Therapeutics by 296.4% in the first quarter. AQR Capital Management LLC now owns 585,025 shares of the biopharmaceutical company's stock valued at $462,000 after purchasing an additional 437,423 shares during the period. Jane Street Group LLC grew its stake in Fate Therapeutics by 106.9% during the 1st quarter. Jane Street Group LLC now owns 63,691 shares of the biopharmaceutical company's stock worth $50,000 after purchasing an additional 32,911 shares in the last quarter. Geode Capital Management LLC grew its stake in Fate Therapeutics by 7.0% during the 2nd quarter. Geode Capital Management LLC now owns 2,429,167 shares of the biopharmaceutical company's stock worth $2,721,000 after purchasing an additional 159,558 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Fate Therapeutics by 19.6% during the 2nd quarter. Invesco Ltd. now owns 255,372 shares of the biopharmaceutical company's stock worth $286,000 after purchasing an additional 41,869 shares in the last quarter. Hedge funds and other institutional investors own 97.54% of the company's stock.

Fate Therapeutics Trading Up 2.0%

Shares of FATE stock opened at $2.57 on Friday. The firm has a fifty day moving average price of $2.50 and a 200 day moving average price of $1.86. The company has a market cap of $299.56 million, a P/E ratio of -2.45 and a beta of 2.52. Fate Therapeutics, Inc. has a 12 month low of $0.93 and a 12 month high of $3.23.

Fate Therapeutics (NASDAQ:FATE - Get Free Report) last posted its earnings results on Thursday, August 13th. The biopharmaceutical company reported ($0.25) EPS for the quarter, meeting the consensus estimate of ($0.25). Fate Therapeutics had a negative return on equity of 60.87% and a negative net margin of 1,941.09%.The firm had revenue of $2.08 million for the quarter, compared to analyst estimates of $1.94 million. On average, equities analysts forecast that Fate Therapeutics, Inc. will post -1.04 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on FATE shares. Jefferies Financial Group set a $4.00 price target on Fate Therapeutics in a research report on Tuesday, May 19th. HC Wainwright reissued a "buy" rating and set a $7.00 price objective on shares of Fate Therapeutics in a research report on Monday, June 8th. Wells Fargo & Company upped their target price on shares of Fate Therapeutics from $2.50 to $3.50 and gave the stock an "equal weight" rating in a research note on Friday. Wedbush reaffirmed an "outperform" rating and issued a $7.00 target price on shares of Fate Therapeutics in a report on Friday. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $8.00 target price (up from $6.00) on shares of Fate Therapeutics in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Fate Therapeutics currently has an average rating of "Hold" and a consensus target price of $5.90.

Insider Activity

In other news, insider Cindy Tahl sold 25,590 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $1.88, for a total value of $48,109.20. Following the transaction, the insider owned 628,155 shares in the company, valued at approximately $1,180,931.40. This represents a 3.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 4.74% of the company's stock.

About Fate Therapeutics

Fate Therapeutics, Inc is a clinical‐stage biopharmaceutical company focused on the development of first‐in‐class cellular immunotherapies for cancer and immune disorders. The company leverages its proprietary induced pluripotent stem cell (iPSC) platform to create off‐the‐shelf natural killer (NK) and T‐cell products designed to overcome limitations of donor‐derived approaches. Fate's research aims to deliver therapies with consistent quality, increased potency and scalable manufacturing for broad patient access.

Central to Fate's pipeline are multiple iPSC‐derived cell therapy candidates in active clinical development.

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