Stock Trading Surge: Investors Buy 30,205 Call Options in Forte Biosciences

Forte Biosciences, Inc. (NASDAQ: FBRX) experienced a significant surge in options trading on November 15, 2023. Investors purchased a remarkable 30,205 call options, representing an increase of approximately 1,663% compared to the average daily volume of 1,713 call options. This heightened activity indicates strong investor interest and speculation surrounding the company’s future performance.

Institutional Investment Movements

Recent changes in holdings by institutional investors and hedge funds further highlight the growing interest in Forte Biosciences. Notably, AlphaQuest LLC acquired a new stake in the company during the first quarter, valued at around $33,000. In the second quarter, Envestnet Asset Management Inc. entered the picture with a new investment worth $244,000.

Tybourne Capital Management HK Ltd. expanded its position by 26.9%, now owning 786,647 shares valued at $10.17 million, following the acquisition of an additional 166,666 shares. Geode Capital Management LLC also increased its stake by 6.7%, bringing its total to 64,110 shares worth $829,000 after purchasing another 4,028 shares.

Finally, Federated Hermes Inc. made a significant move by buying a new position in Forte Biosciences valued at $13.86 million. Collectively, these institutional investors hold 77.63% of the company’s stock, underscoring a solid foundation of support from larger investment entities.

Market Performance and Analyst Ratings

As of November 16, 2023, shares of Forte Biosciences opened at $20.25. The company has a market capitalization of $253.73 million, a price-to-earnings (P/E) ratio of -6.10, and a beta of 3.26. Over the past year, the stock has fluctuated between a low of $4.90 and a high of $25.97. Currently, the fifty-day moving average stands at $15.27, while the 200-day moving average is at $12.85.

Forte Biosciences recently announced its earnings results on November 14, reporting a loss of ($0.99) earnings per share (EPS), which exceeded analyst expectations of ($1.04) by $0.05. Analysts forecast a projected EPS of ($12.12) for the current fiscal year, reflecting ongoing challenges for the company.

Several analysts have weighed in on Forte Biosciences, with varying opinions. Chardan Capital reaffirmed a “buy” rating with a price target of $61.00. Guggenheim initiated coverage with a “buy” rating and a price target of $75.00. Conversely, Wall Street Zen downgraded the stock from a “hold” to a “sell” rating, while Weiss Ratings maintained a “sell (d-)” rating.

Despite these mixed reviews, four analysts have rated the stock as a “buy,” and one as a “sell.” According to MarketBeat data, the company currently holds a consensus rating of “Moderate Buy” with an average price target of $67.00.

Forte Biosciences operates as a biopharmaceutical company in the United States, focusing on developing the FB-102 program to address various autoimmune diseases, including graft-versus-host disease, vitiligo, and alopecia areata. The company is headquartered in Dallas, Texas, and its recent trading activity reflects both investor confidence and a keen interest in its future prospects.