Genetic medicines company Wave Life Sciences Ltd. (NASDAQ: WVE) recently revealed in a filing with the Securities Exchange Commission (SEC) that a top shareholder of the company has bought substantial shares of the company.
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A top shareholder is one who owns a stake of more than 10% in the company.
Ra Capital Management, LLC is the top shareholder who has made the significant purchase.
Shares of the company were upbeat, as the stock gained almost 4.6% to close at $2.06 in yesterday’s trading session.
Details of the Purchase
On June 16, Ra Capital Management bought 9,480,052 shares at an average price of $2.15, imputing a value of about $20.4 million.
Following the acquisition, Ra Capital Management now owns 17,202,009 shares of Wave Life Sciences.
Notably, apart from being a top shareholder, Ra Capital Management also occupies the position of Director in the company.
Stock Rating
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on two Buys and three Holds. The average WVE price target of $7 implies the stock has upside potential of 239.8% from current levels.
Conclusion
Buying by a key insider might denote that the stock is either undervalued or is ready for a substantial upside move. Keeping that in mind, Ra Capital Management’s move to stock up on the shares of the company and that too for such a large amount indicates rising confidence about the prospects of the company.