Atara Biotherapeutics, Inc. (NASDAQ:ATRA) has recently received mixed recommendations from five brokerages, according to a report by Bloomberg.com. Out of the five analysts covering the firm, two have advised selling the stock while three have given it a buy recommendation. As of July 19, 2023, the consensus recommendation for Atara Biotherapeutics stands at “Hold.” The average 1-year price target among these brokerages is $18.00.
In May 8th’s quarterly earnings announcement, Atara Biotherapeutics reported an underwhelming performance and missed analysts’ consensus estimates. The biotechnology company posted earnings per share (EPS) of ($0.72), significantly lower than the expected EPS of ($0.40). Furthermore, their revenue for the quarter amounted to $1.23 million, falling short of the anticipated $37.67 million.
An in-depth analysis reveals that Atara Biotherapeutics had a negative return on equity of 166.74% and a negative net margin of 373.95%. These figures indicate that the company encountered financial difficulties during this period.
Despite these setbacks, Atara Biotherapeutics remains dedicated to developing innovative therapies for patients with solid tumors, hematologic cancers, and autoimmune diseases within the United States market. Their primary focus revolves around Tab-cel (tabelecleucel), which is currently in Phase 3 clinical trials.
Tab-cel is an immunotherapy program aimed at combatting epstein-barr virus (EBV)-driven post-transplant lymphoproliferative disease as well as nasopharyngeal carcinoma. By harnessing T-cell technology, Atara Biotherapeutics aims to revolutionize treatment options for patients suffering from these conditions.
Moving forward into fiscal year projections, equities research analysts predict that Atara Biotherapeutics will post an EPS of -2.57 for this period.
In conclusion, Atara Biotherapeutics, Inc. has received a “Hold” recommendation from five brokerages. With two analysts advising selling and three suggesting buying the stock, there is significant divergence in opinions on the firm’s potential. However, it is important to consider that their recent quarterly earnings fell short of estimates, contributing to a negative return on equity and net margin. Despite these challenges, Atara Biotherapeutics remains committed to developing innovative therapies, with their leading product Tab-cel undergoing Phase 3 clinical trials for the treatment of EBV-driven post-transplant lymphoproliferative disease and nasopharyngeal carcinoma.
Atara Biotherapeutics, Inc.
ATRA
Neutral
Updated on: 03/12/2023
Weak 
Debt to equity ratio: Buy 
Navigating Turbulent Waters: The Volatility and Uncertainty Surrounding Atara Biotherapeutics Shares
Atara Biotherapeutics Faces Shifting Market Sentiment as Shares Experience Volatility
Date: July 19, 2023
Undoubtedly, Atara Biotherapeutics has encountered a turbulent period in the stock market recently. Following conflicting recommendations from research analysts and notable changes in stock valuation, shareholders are left perplexed about the company’s future prospects. This article aims to delve into the complex dynamics surrounding the company, exploring both the recommendations from analysts and significant transactions made by insiders. Additionally, we will examine how hedge funds and institutional investors have responded to these developments.
Market Analysis:
Shares of Atara Biotherapeutics (ATRA) opened at $2.05 on July 19, 2023. The company currently boasts a market capitalization of approximately $200.84 million. Importantly, the price-to-earnings ratio for ATRA stands at an unconventional -0.99, signifying financial losses at present. Nonetheless, it is worth noting that the company possesses a relatively low beta of 0.95 indicating less volatility compared to the broader market.
Research Analyst Recommendations:
Research analysts have been eager to provide their insights on Atara Biotherapeutics’ current situation. Notably, StockNews.com downgraded the stock from a “hold” rating to a “sell” rating on May 11th this year. Conversely, HC Wainwright maintained their bullish sentiment toward ATRA by reiterating their “buy” rating and raising their price objective from $27.00 to $28.00 on June 14th.
Insider Trading Activity:
CEO Pascal Touchon made headlines after selling 29,766 shares of Atara Biotherapeutics in a transaction valued at approximately $60,722.64 on May 16th this year. Despite this sale, Touchon still holds a substantial stake in the company with 720,962 shares valued at $1,470,762.48. It is important to note that this transaction was disclosed to the Securities and Exchange Commission (SEC) as mandated and can be accessed through their official website.
Institutional Investors’ Response:
Hedge funds and institutional investors have shown varying degrees of confidence in Atara Biotherapeutics recently. Allspring Global Investments Holdings LLC increased its stake in ATRA by 47.2% during the second quarter, now holding 66,404 shares worth approximately $107,000. Similarly, Harbor Capital Advisors Inc. established a new position with an investment of $81,000 during the same period.
However, it is crucial to highlight Ameriprise Financial Inc.’s positive outlook on Atara Biotherapeutics after boosting its position by 11% during the first quarter. The company now holds a significant shareholding of 1,479,865 shares valued at $4,292,000. Moreover, JPMorgan Chase & Co., despite only lifting its position by 2.1% in the first quarter with 7,655,769 shares valued at $22,201,000, maintained its stake in Atara Biotherapeutics.
Conclusion:
As market sentiment fluctuates around Atara Biotherapeutics due to differing analyst recommendations and insider trading activity from CEO Pascal Touchon, it is clear that shareholders must exercise caution and perform comprehensive due diligence when deciding their positions on this biotechnology company’s stock. Furthermore, the varied responses from hedge funds and institutional investors attest to the degree of uncertainty surrounding ATRA’s future performance.
Investors are advised to stay attuned to further developments within Atara Biotherapeutics as these events may provide greater clarity regarding potential investment opportunities moving forward.
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