On December 31, 2024, WASATCH ADVISORS LP (Trades, Portfolio) made a significant move by acquiring an additional 952,691 shares of Macrogenics Inc (MGNX, Financial). This transaction increased the firm's total holdings in the biotechnology company to 3,488,493 shares. The shares were acquired at a trade price of $3.25, marking a strategic addition to the firm's portfolio. This acquisition represents a 37.57% increase in the firm's stake in Macrogenics, with the stock now accounting for 0.06% of the firm's overall portfolio and 5.60% of the firm's holdings in the traded stock.
Profile of WASATCH ADVISORS LP (Trades, Portfolio)
WASATCH ADVISORS LP (Trades, Portfolio), headquartered in Salt Lake City, Utah, is a well-regarded investment firm known for its focus on the technology and industrial sectors. The firm manages an equity value of $20.4 billion, with top holdings including Ensign Group Inc (ENSG, Financial), HealthEquity Inc (HQY, Financial), Globant SA (GLOB, Financial), Shift4 Payments Inc (FOUR, Financial), and Clearwater Analytics Holdings Inc (CWAN, Financial). The firm's investment philosophy emphasizes long-term growth and value, seeking opportunities in sectors with robust potential for innovation and expansion.
Details of Macrogenics Inc
Macrogenics Inc is a biotechnology company based in the USA, specializing in the development of antibody-based therapeutics for cancer treatment. The company's product portfolio includes MARGENZA, a treatment for metastatic HER2-positive breast cancer, and a pipeline of candidates targeting tumor-associated antigens and immune checkpoint molecules. Key products in development include MGC018, Lorigerlimab, Tebotelimab, and others, spanning various business segments such as collaborative agreements, contract manufacturing, and product sales.
Analysis of the Transaction
The acquisition of additional shares in Macrogenics Inc by WASATCH ADVISORS LP (Trades, Portfolio) reflects a strategic decision to bolster its position in the biotechnology sector. Despite the current stock price of $2.40, which is below the trade price, the firm maintains a significant stake in the company. The transaction's impact on the firm's portfolio is relatively modest, with Macrogenics representing a small portion of the overall holdings. However, the firm's increased investment suggests confidence in the company's long-term potential.
Financial Overview of Macrogenics Inc
Macrogenics Inc currently has a market capitalization of $150.632 million, with a stock price of $2.40. The company's financial health is a concern, with a Profitability Rank of 1/10 and a Growth Rank of 2/10. The GF-Score is 46/100, indicating poor future performance potential. The stock is considered a possible value trap, with a GF Value Rank of 2/10, suggesting investors should think twice before investing.
Performance Metrics and Ratios
Key performance metrics for Macrogenics Inc reveal challenges, with a negative ROE of -77.40% and ROA of -36.09%. The company's Operating Margin growth is 8.40%, but revenue growth over the past three years has declined by 20.90%. The Altman Z score of -5.38 indicates financial distress, while the Piotroski F-Score is 2, reflecting weak financial strength. The company's Momentum Rank is 2/10, with a 14-day RSI of 25.91, suggesting bearish momentum.
Conclusion
The acquisition of additional shares in Macrogenics Inc by WASATCH ADVISORS LP (Trades, Portfolio) highlights the firm's strategic interest in the biotechnology sector. While the transaction increases the firm's exposure to potential growth opportunities, it also involves risks given Macrogenics' current financial challenges and market performance. Investors should consider the potential risks and opportunities associated with Macrogenics Inc, as the company's financial metrics suggest caution. The firm's decision to increase its stake may indicate a belief in the company's long-term prospects, despite the current market conditions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
