Cathie Wood Is Buying Up Red-Hot Fate Therapeutics (FATE) Stock

  • Ark Invest purchased 628,060 shares of Fate Therapeutics (FATE) stock yesterday.
  • The company reported revenue of $18.5 million in its second-quarter earnings.
  • FATE stock is down more than 40% year-to-date (YTD).
An image of a tablet with 'therapeutics' on the screen, a stethoscope and face mask around it
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Shares of Fate Therapeutics (NASDAQ:FATE) stock are up 3% following a massive purchase by two of Cathie Wood’s exchange-traded funds (ETFs). Fate is a clinical stage biotechnology company that develops cellular immunotherapies for patients with cancer and immune disorders.

Wood’s purchases come about a week after Fate reported its second-quarter earnings. For the period, revenue tallied in at $18.5 million, up 38% year-over-year (YOY). Earnings per share (EPS) came in at a loss of 79 cents, beating the consensus analyst estimate of a loss of 86 cents.

In the release, the company also reported treating its first patient with its CAR MICA/B NK cell product candidate for solid tumors. Fate expanded its second solid tumor program collaboration with Ono Pharmaceutical (OTCMKTS:OPHLY) as well.

With that in mind, let’s get into the details of the recent Ark Invest purchases.

FATE Stock: Cathie Wood Buys Shares

Yesterday, the ARK Innovation ETF (NYSEARCA:ARKK) reported purchasing 478,756 shares of FATE stock. On the same day, the ARK Genomic Revolution ETF (BATS:ARKG) also purchased 149,304 shares.

It seems that Cathie Wood has had a change of heart; ARKK sold 307,711 shares of FATE on Aug. 8, just days before the latest purchase. After the two purchases, FATE stock is now the 17th largest holding among all Ark ETFs out of 51 total positions. In ARKG, it is now the seventh-largest holding out of 49 total.

These recent purchases are Ark’s first since Feb. 25. While Fate still remains unprofitable, the seven proprietary cell therapy candidates in the company’s pipeline offer investors a chance to buy in on future potential.

So, Ark is on board with FATE stock. But how does the rest of Wall Street view Fate Therapeutics?

Analysts Chime In on Fate Therapeutics

  • Mizuho Securities has a price target of $109 for FATE stock. Analyst Mara Goldstein raised her price target after Fate expanded its collaboration with Ono. Goldstein views the extended collaboration as a sign of progress. As part of the collaboration, Fate will receive research funding, clinical and regulatory milestone payments and the “right to jointly develop and commercialize in the US and EU.”
  • BMO Capital has a price target of $47. Analyst Etzer Darout is a big fan of the company’s iPSC platform due to its “versatile off-the-shelf products” and unique position in the cell therapy space. Still, the analyst has questions on whether engineered NK cells can demonstrate convenience and safety for a hospital setting. Darout believes Fate’s current valuation offers “meaningful upside” and hopes to hear more updates during the second half of the year.
  • Finally, FATE stock has an average price target of $76.30 among 20 firms with coverage of shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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