Traders Buy Large Volume of Call Options on Biomea Fusion (NASDAQ:BMEA)

Key Points

• Unusual options activity: Traders purchased 2,889 Biomea Fusion call options, 172% above the typical volume of 1,064 contracts.
• Analyst outlook remains moderately positive: Five analysts rate the stock Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and an average price target of $9.00.
• Biomea Fusion shares recently traded at $1.74, while institutional investors own 96.72% of the company; Renaissance Technologies increased its position by 174.3% in the first quarter.

Biomea Fusion, Inc. (NASDAQ:BMEA - Get Free Report) was the recipient of some unusual options trading activity on Monday. Stock traders acquired 2,889 call options on the stock. This is an increase of 172% compared to the typical volume of 1,064 call options.

Analysts Set New Price Targets

Several brokerages recently issued reports on BMEA. Weiss Ratings cut shares of Biomea Fusion from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, July 1st. HC Wainwright reissued a "buy" rating on shares of Biomea Fusion in a report on Monday, August 24th. Finally, Wall Street Zen raised Biomea Fusion from a "sell" rating to a "hold" rating in a report on Saturday. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Biomea Fusion presently has a consensus rating of "Moderate Buy" and an average price target of $9.00.

Biomea Fusion Stock Performance

Shares of NASDAQ BMEA traded down $0.10 during midday trading on Monday, hitting $1.74. 850,655 shares of the company's stock traded hands, compared to its average volume of 1,307,417. The firm has a fifty day moving average of $1.49 and a 200 day moving average of $1.46. Biomea Fusion has a 1 year low of $0.87 and a 1 year high of $2.99. The stock has a market capitalization of $125.76 million, a price-to-earnings ratio of -5.99 and a beta of -0.23.

Biomea Fusion (NASDAQ:BMEA - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.22) by $0.10. On average, equities analysts anticipate that Biomea Fusion will post -0.73 earnings per share for the current year.

Institutional Investors Weigh In On Biomea Fusion

Hedge funds and other institutional investors have recently modified their holdings of the stock. Renaissance Technologies LLC lifted its position in Biomea Fusion by 174.3% during the first quarter. Renaissance Technologies LLC now owns 1,312,798 shares of the company's stock valued at $2,009,000 after purchasing an additional 834,179 shares in the last quarter. BlackRock Inc. purchased a new stake in Biomea Fusion in the second quarter worth about $1,052,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in Biomea Fusion in the fourth quarter worth about $783,000. GSA Capital Partners LLP bought a new position in shares of Biomea Fusion in the second quarter worth about $318,000. Finally, ADAR1 Capital Management LLC bought a new position in shares of Biomea Fusion in the second quarter worth about $64,000. 96.72% of the stock is currently owned by hedge funds and other institutional investors.

Biomea Fusion Company Profile

Biomea Fusion, Inc is a clinical-stage biopharmaceutical company focused on developing small-molecule medicines for patients with cancer and metabolic diseases. The company uses its proprietary FUSION System to discover and develop covalent medicines designed to selectively target disease-associated proteins.

Biomea's lead investigational product is icovamenib, also known as BMF-219, an oral covalent inhibitor of menin. The company has evaluated icovamenib in clinical studies for genetically defined blood cancers, including acute leukemias and multiple myeloma, as well as for type 2 diabetes and other metabolic conditions.

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