According to a recent SEC filing, investment firm RA Capital has increased its holdings in penny stock Black Diamond Therapeutics (NASDAQ:BDTX). RA Capital, which primarily invests in public and private healthcare and life science companies, bought 935,850 shares of BDTX for $5 apiece. Including the recent transaction, RA Capital now holds over 3.21 million shares of this clinical-stage precision oncology medicine company.
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The move comes after the company announced the public offering of 15 million shares to raise $75 million on June 29.
Black Diamond Therapeutics stock has gained significantly over the past month following the positive phase 1 data from its lead candidate, BDTX-1535, in NSCLC (non-small cell lung cancer) therapy.
Following BDTX-1535’s initial results, H.C. Wainwright analyst Robert Burns upgraded BDTX stock to Buy from Hold on June 28. Moreover, the analyst assigned a price target of $11.
The analyst used a discounted cash flow (DCF)-based valuation methodology to assign a $11 price target to BDTX stock. He assigned a 30% probability to the launch of BDTX-1535 in EGFR (epidermal growth factor receptor) NSCLC. The analysts’ assumptions suggest a total firm value of roughly $392M, implying $11 per share.
Is BDTX a Buy?
Black Diamond Therapeutics stock sports a Strong Buy consensus rating on TipRanks based on four unanimous Buy recommendations. Analysts’ average price target of $11.75 suggests a solid upside potential of 166.44%.
While analysts are bullish about BDTX’s prospects, investors can leverage TipRanks’ penny stock screener to find attractive Penny stocks with the potential to deliver solid returns.
