One of 89bio’s (NASDAQ:ETNB) directors and more than 10% owners, Ra Capital Management, LLC, recently increased its stake in the company. It disclosed the purchase of ETNB stock worth $20.72 million. Following the purchase, ETNB stock gained about 17% in yesterday’s extended trade and another 11% at the time of writing.
This clinical-stage biopharma company is focused on developing treatments for liver and cardio-metabolic diseases.
According to the SEC filing, Ra Capital bought 1.35 million shares of the company at a weighted average price of $15.35 per share on March 4. The total value of ETNB stock in the firm’s portfolio currently stands at $149.8 million.
Monitoring insider trading activities can offer valuable cues for investors, helping them gauge the health and potential performance of a company. As per the data collected by TipRanks, Ra Capital has witnessed a 46% success rate on its trades in the past three months. Further, Ra Capital has generated an average return of 5.2% per transaction.
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Recent Events
It is worth highlighting that the insider purchased ETNB’s shares following the release of the company’s Q4 results. The company missed analysts’ earnings expectations for the fourth quarter. During the earnings call, the company said it plans to begin the Phase 3 trials of its NASH program in the first quarter of 2024.
Following the earnings release on February 29, 89bio received three Buys and one Hold rating from Wall Street analysts.
What is the Price Target for ETNB Stock?
After a 22% rally in the past three months, 89bio stock’s average price target of $27.33 implies an upside potential of 125.3% from the current level. Furthermore, ETNB has a Strong Buy consensus rating based on three Buys and one Hold recommendation.
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