Aura Biosciences (NASDAQ:AURA) stock gained over 5% in yesterday’s extended trade after two insiders revealed their purchase of AURA shares. Despite a recent 20% dip in the stock, insiders’ purchases indicate confidence in the company’s growth prospects.
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The biotech company specializes in the development of therapies for rare eye cancers, utilizing its proprietary virus-like particle platform.
Insiders’ Moves in Detail
As per an SEC filing, Matrix Capital Management Company, L.P., owner of more than 10% of shares, bought 1.56 million shares of Aura at a weighted average price of $9 per share on November 9. The transaction’s total value stands at $14.04 million.
It is worth highlighting that Matrix Capital purchased shares as part of Aura’s underwritten offering of 11 million shares. After the latest purchase, the total value of the firm’s holdings in AURA stock now stands at about $51 million.
Another insider to have recently purchased Aura’s shares is David Michael Johnson, Chairman of Aura’s board. He added 199,601 shares of the company for a total value of $1.43 million on November 7.
Is Aura a Good Stock to Buy?
All four analysts covering Aura stock have rated it a Buy resulting in a Strong Buy consensus rating. The average AURA stock price target of $25.67 implies an impressive upside of 265.67% from the current level.
Among the bullish analysts, BTIG analyst Julian Harrison’s Buy rating is based on the promising results from the Phase 2 trial of the company’s drug, bel-sar, used to treat ocular cancer. Further, the treatment is said to have significant market potential for bel-sar as the first approved first-line treatment for the disease. Thus, the potential market opportunity and the company’s progress in the treatment make AURA stock a Buy. Given the potential market opportunity for this drug, AURA stock is recommended as a Buy.
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