Kura Oncology (NASDAQ:KURA) Shares Up 5% - Should You Buy?

Key Points

• Kura Oncology shares rose 5% to about $12.49 in mid-day trading, although volume was 68% below the average session level.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $25.40; 10 analysts rate the stock Buy, compared with two Holds and one Sell.
• The company beat quarterly expectations, reporting an adjusted loss of $0.77 per share versus the $0.88 estimate and revenue of $20.87 million, while CEO Troy Edward Wilson purchased 100,000 shares worth $1.11 million.

Kura Oncology, Inc. (NASDAQ:KURA - Get Free Report) shares shot up 5% during mid-day trading on Monday . The company traded as high as $12.33 and last traded at $12.4860. Approximately 515,751 shares were traded during mid-day trading, a decline of 68% from the average session volume of 1,605,940 shares. The stock had previously closed at $11.89.

Wall Street Analyst Weigh In

Several brokerages have weighed in on KURA. Sanford C. Bernstein set a $24.00 target price on shares of Kura Oncology in a research report on Monday, June 15th. Citizens Jmp reiterated a "market outperform" rating and set a $24.00 price target on shares of Kura Oncology in a research report on Monday. CLSA set a $24.00 price target on Kura Oncology in a research note on Thursday, June 4th. Citigroup restated a "market outperform" rating on shares of Kura Oncology in a report on Monday. Finally, Wall Street Zen raised Kura Oncology from a "strong sell" rating to a "hold" rating in a research note on Saturday, May 16th. Ten analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $25.40.

Kura Oncology Price Performance

The stock has a market capitalization of $1.14 billion, a PE ratio of -3.79 and a beta of 0.38. The company's 50 day simple moving average is $10.53 and its 200 day simple moving average is $9.47. The company has a current ratio of 4.73, a quick ratio of 4.71 and a debt-to-equity ratio of 0.12.

Kura Oncology (NASDAQ:KURA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($0.77) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.88) by $0.11. The business had revenue of $20.87 million for the quarter, compared to analysts' expectations of $20.16 million. Kura Oncology had a negative return on equity of 207.18% and a negative net margin of 384.30%. On average, equities analysts anticipate that Kura Oncology, Inc. will post -3.23 earnings per share for the current year.

Insider Transactions at Kura Oncology

In other news, CEO Troy Edward Wilson acquired 100,000 shares of the company's stock in a transaction dated Monday, August 17th. The stock was acquired at an average cost of $11.12 per share, for a total transaction of $1,112,000.00. Following the acquisition, the chief executive officer directly owned 379,194 shares in the company, valued at approximately $4,216,637.28. This represents a 35.82% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Mollie Leoni sold 84,929 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $9.82, for a total value of $834,002.78. Following the completion of the transaction, the insider directly owned 182,345 shares in the company, valued at $1,790,627.90. This trade represents a 31.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 7.60% of the company's stock.

Institutional Trading of Kura Oncology

A number of institutional investors and hedge funds have recently bought and sold shares of KURA. IFP Advisors Inc increased its holdings in Kura Oncology by 115.3% in the fourth quarter. IFP Advisors Inc now owns 2,398 shares of the company's stock valued at $25,000 after buying an additional 1,284 shares during the last quarter. Royal Bank of Canada lifted its holdings in Kura Oncology by 7.6% during the 4th quarter. Royal Bank of Canada now owns 19,577 shares of the company's stock worth $203,000 after buying an additional 1,375 shares during the last quarter. Allworth Financial LP grew its position in shares of Kura Oncology by 59.9% in the 4th quarter. Allworth Financial LP now owns 4,146 shares of the company's stock worth $43,000 after acquiring an additional 1,553 shares in the last quarter. Focus Partners Advisor Solutions LLC grew its position in shares of Kura Oncology by 7.9% in the 4th quarter. Focus Partners Advisor Solutions LLC now owns 22,889 shares of the company's stock worth $238,000 after acquiring an additional 1,682 shares in the last quarter. Finally, ProShare Advisors LLC increased its holdings in shares of Kura Oncology by 10.0% in the 4th quarter. ProShare Advisors LLC now owns 18,572 shares of the company's stock valued at $193,000 after acquiring an additional 1,692 shares during the last quarter.

Kura Oncology Company Profile

Kura Oncology, Inc NASDAQ: KURA is a clinical-stage biopharmaceutical company focused on the discovery and development of targeted oncology therapies. Headquartered in La Jolla, California, the company leverages expertise in molecular biology and precision medicine to identify key drivers of cancer growth and design small-molecule inhibitors that block those pathways. Kura's research platform integrates genomic insights with medicinal chemistry to advance candidates against well-validated targets in solid tumors and hematologic malignancies.

The company's lead clinical candidate, tipifarnib, is a farnesyltransferase inhibitor being evaluated for the treatment of HRAS-mutant head and neck squamous cell carcinoma and various non-small cell lung cancers.

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