Mesoblast (NASDAQ:MESO) Shares Gap Up - Should You Buy?

Key Points

• Gapped up: Mesoblast shares opened at $15.48 (prior close $14.61) and traded up about 7.6% to $15.7150 on the session, with a market cap near $2.03 billion and 50/200-day moving averages of $15.54/$16.79.
• Mixed analyst view and weak fundamentals: The stock has an average rating of "Hold" (one Strong Buy, one Hold, one Sell) and Weiss Ratings reiterated a "sell (e+)"; the company reported EPS of ($0.16) last quarter, a negative P/E of -29.12, and analysts expect ~-0.7 EPS for the year.
• Significant insider buying: Director Gregory George purchased 2,324,072 shares at $1.48 each, raising his stake to 8,324,072 shares, while insiders purchased about 9.89 million shares last quarter and now own 18.8% of the company.

Shares of Mesoblast Limited (NASDAQ:MESO - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $14.61, but opened at $15.48. Mesoblast shares last traded at $15.7150, with a volume of 46,581 shares traded.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a "sell (e+)" rating on shares of Mesoblast in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Mesoblast presently has an average rating of "Hold".

Mesoblast Trading Up 7.6%

The company has a market capitalization of $2.03 billion, a price-to-earnings ratio of -29.12 and a beta of 2.19. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.58 and a quick ratio of 1.41. The business has a fifty day moving average price of $15.54 and a 200 day moving average price of $16.79.

Mesoblast (NASDAQ:MESO - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The company reported ($0.16) earnings per share (EPS) for the quarter. The firm had revenue of $25.67 million during the quarter. On average, equities analysts expect that Mesoblast Limited will post -0.7 EPS for the current fiscal year.

Insider Activity

In other news, Director Gregory George acquired 2,324,072 shares of the stock in a transaction dated Friday, April 10th. The shares were acquired at an average cost of $1.48 per share, for a total transaction of $3,439,626.56. Following the completion of the transaction, the director owned 8,324,072 shares in the company, valued at approximately $12,319,626.56. This trade represents a 38.73% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders purchased 9,892,852 shares of company stock worth $28,429,183 in the last quarter. Insiders own 18.80% of the company's stock.

Institutional Trading of Mesoblast

A number of institutional investors and hedge funds have recently modified their holdings of MESO. Goldman Sachs Group Inc. bought a new stake in shares of Mesoblast during the first quarter valued at approximately $3,209,000. Creative Planning bought a new stake in shares of Mesoblast during the second quarter valued at approximately $141,000. Raymond James Financial Inc. bought a new stake in shares of Mesoblast during the second quarter valued at approximately $86,000. China Universal Asset Management Co. Ltd. increased its position in shares of Mesoblast by 33.7% during the second quarter. China Universal Asset Management Co. Ltd. now owns 9,124 shares of the company's stock valued at $99,000 after purchasing an additional 2,302 shares during the period. Finally, Farther Finance Advisors LLC bought a new stake in Mesoblast in the third quarter valued at $58,000. 1.43% of the stock is currently owned by institutional investors.

Mesoblast Company Profile

Mesoblast Limited is a global leader in allogeneic cellular medicines, focused on developing treatments for inflammatory and immunologic diseases. Founded in 2004 by Dr. Silviu Itescu, the company builds on proprietary mesenchymal lineage cell technology to create off-the-shelf, donor-derived therapies. These therapies are designed to modulate immune responses and promote tissue repair in conditions where existing medical options are limited or ineffective.

The company's most advanced product, Alofisel® (darvadstrocel), has been approved in Europe for the treatment of complex perianal fistulas in adults with Crohn's disease.

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