Kura Oncology (NASDAQ:KURA) Stock Falls 12% - Here's What Happened

Key Points

• Kura Oncology shares fell about 12% in Wednesday mid-day trading, reaching $8.69; trading volume was 66% below its average.
• Analyst sentiment remained broadly positive: 11 analysts rated the stock Buy, one Hold and one Sell, giving it a consensus “Moderate Buy” rating and an average price target of $25.35.
• Insider trading was mixed: CEO Troy Wilson bought 100,000 shares in August, while insiders collectively sold 153,881 shares worth about $1.71 million over the past three months.

Kura Oncology, Inc. (NASDAQ:KURA - Get Free Report) shares dropped 12% during mid-day trading on Wednesday. The stock traded as low as $8.89 and last traded at $8.6910. Approximately 572,242 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 1,666,534 shares. The stock had previously closed at $9.88.

Analysts Set New Price Targets

Several analysts have commented on KURA shares. Weiss Ratings restated a "sell (d-)" rating on shares of Kura Oncology in a report on Thursday, October 15th. Wedbush raised their price objective on shares of Kura Oncology from $36.00 to $38.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Citigroup reaffirmed a "market outperform" rating on shares of Kura Oncology in a research note on Wednesday, October 14th. JPMorgan Chase & Co. began coverage on Kura Oncology in a report on Thursday, October 1st. They set an "overweight" rating and a $30.00 target price for the company. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $24.00 price target on shares of Kura Oncology in a research note on Monday, August 24th. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $25.35.

Kura Oncology Trading Down 18.9%

The company has a debt-to-equity ratio of 0.12, a current ratio of 4.73 and a quick ratio of 4.71. The business's 50-day moving average is $11.06 and its two-hundred day moving average is $9.81. The firm has a market cap of $712.66 million, a P/E ratio of -2.39 and a beta of 0.56.

Kura Oncology (NASDAQ:KURA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($0.77) EPS for the quarter, topping analysts' consensus estimates of ($0.88) by $0.11. Kura Oncology had a negative net margin of 384.30% and a negative return on equity of 207.18%. The company had revenue of $20.87 million during the quarter, compared to the consensus estimate of $20.16 million. As a group, analysts predict that Kura Oncology, Inc. will post -3.25 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Troy Wilson acquired 100,000 shares of the company's stock in a transaction dated Monday, August 17th. The shares were bought at an average price of $11.12 per share, for a total transaction of $1,112,000.00. Following the purchase, the chief executive officer directly owned 379,194 shares in the company, valued at approximately $4,216,637.28. This trade represents a 35.82% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brian Powl sold 17,020 shares of the stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $10.53, for a total value of $179,220.60. Following the completion of the sale, the insider directly owned 152,249 shares of the company's stock, valued at approximately $1,603,181.97. The trade was a 10.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 153,881 shares of company stock worth $1,708,183. Corporate insiders own 7.60% of the company's stock.

Hedge Funds Weigh In On Kura Oncology

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Pictet Asset Management Holding SA boosted its stake in shares of Kura Oncology by 22.6% in the third quarter. Pictet Asset Management Holding SA now owns 14,412 shares of the company's stock valued at $154,000 after buying an additional 2,656 shares during the period. Alps Advisors Inc. raised its holdings in Kura Oncology by 30.8% in the 3rd quarter. Alps Advisors Inc. now owns 117,876 shares of the company's stock valued at $1,262,000 after acquiring an additional 27,783 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Kura Oncology in the 3rd quarter valued at $49,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Kura Oncology during the 3rd quarter valued at $228,000. Finally, China Universal Asset Management Co. Ltd. lifted its position in shares of Kura Oncology by 14.9% during the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 16,232 shares of the company's stock valued at $175,000 after acquiring an additional 2,104 shares during the period.

About Kura Oncology

Kura Oncology, Inc NASDAQ: KURA is a biopharmaceutical company focused on developing precision medicines for the treatment of cancer. The company's research programs target genetic and molecular drivers of malignancies, with the goal of developing therapies for patients with limited treatment options.

Kura's lead product candidate has been ziftomenib, an oral, selective menin inhibitor being developed for genetically defined forms of acute myeloid leukemia (AML), including AML associated with NPM1 mutations and KMT2A rearrangements.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.