Nkarta (NASDAQ:NKTX) Stock Falls 2.8% - Here's Why

Key Points

• Nkarta shares fell 2.8% to $1.75 in mid-day trading, with volume nearly doubling the average session level.
• Analyst views remain mixed, but the stock holds a consensus “Moderate Buy” rating and an average price target of $11.20, despite recent target reductions and a “Strong Sell” downgrade from one source.
• The clinical-stage biotechnology company missed quarterly earnings expectations, reporting a loss of $0.54 per share versus the $0.36 consensus estimate; institutions and hedge funds own approximately 80.54% of the stock.

Nkarta, Inc. (NASDAQ:NKTX - Get Free Report)'s share price traded down 2.8% on Monday. The stock traded as low as $1.75 and last traded at $1.75. Approximately 1,436,657 shares changed hands during mid-day trading, an increase of 96% from the average session volume of 734,699 shares. The stock had previously closed at $1.80.

Analysts Set New Price Targets

NKTX has been the subject of several recent research reports. HC Wainwright decreased their price objective on Nkarta to $14.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Stifel Nicolaus lowered their price target on shares of Nkarta from $11.00 to $10.00 and set a "buy" rating on the stock in a report on Friday, August 14th. Wall Street Zen downgraded shares of Nkarta from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 15th. TD Cowen began coverage on shares of Nkarta in a research report on Tuesday, June 23rd. They issued a "buy" rating for the company. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Nkarta in a research report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $11.20.

Nkarta Trading Down 2.8%

The company has a market capitalization of $125.33 million, a P/E ratio of -1.11 and a beta of 0.93. The firm has a fifty day moving average of $2.58 and a 200 day moving average of $2.69.

Nkarta (NASDAQ:NKTX - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.54) EPS for the quarter, missing the consensus estimate of ($0.36) by ($0.18). Sell-side analysts anticipate that Nkarta, Inc. will post -1.60 EPS for the current fiscal year.

Hedge Funds Weigh In On Nkarta

Several hedge funds and other institutional investors have recently modified their holdings of the stock. The Manufacturers Life Insurance Company purchased a new stake in shares of Nkarta in the 1st quarter valued at $30,000. Susquehanna Fundamental Investments LLC purchased a new position in Nkarta in the 2nd quarter valued at about $30,000. Pallas Capital Advisors LLC acquired a new position in Nkarta in the 2nd quarter valued at $31,000. Spark Investment Management LLC purchased a new position in shares of Nkarta in the second quarter worth about $33,000. Finally, WINTON GROUP Ltd acquired a new position in shares of Nkarta during the 2nd quarter worth approximately $45,000. 80.54% of the stock is owned by hedge funds and other institutional investors.

About Nkarta

Nkarta, Inc NASDAQ: NKTX is a clinical-stage biotechnology company developing engineered natural killer (NK) cell therapies for cancer and autoimmune diseases. The company's approach is designed to harness the innate immune activity of NK cells while using chimeric antigen receptors (CARs) to direct them toward specific disease-associated targets.

Nkarta's development platform includes allogeneic, or donor-derived, CAR NK cell therapies intended to be manufactured for use across multiple patients.

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