Mirati Therapeutics Inc. (MRTX): Baker Bros. Advisors Increases Stake in Growing Stock

The public offering not only allowed Baker Bros. Advisors to increase its 13D holding in the equity, but also to execute a new insider purchase of stock. Following the purchase of 425,000 shares at $20.00 per share as part of Mirati Therapeutics’ underwritten public offering, the hedge fund holds 2.8 million shares. However, the investment firm is also deemed to beneficially own around 313,700 warrants to acquire shares of common stock at $6.74 until April 2016, as well as holding 280,200 warrants for the purchase of shares at $7.86, which expire in November of 2017. This brings its total holdings to 3.3 million shares of common stock.

Baker Bros. Advisors has been betting on the biopharmaceutical company since its initial public offering in July of 2013 and it has not been disappointed. Since the stock first began trading on the NASDAQ, share prices gained a whopping 134%. Throughout 2014, the equity saw a great deal of fluctuation, yet achieved an overall good performance and gained around 10%. Furthermore, according to its latest financial results, Mirati Therapeutics posted a diluted loss of $0.72 per share during the third quarter of 2014. This is positive news, considering the company registered a net loss of around $2.95 per share during the same quarter the year before. In addition, the analysts consensus earnings estimate for this quarter is $1.00 per share.

Clearly Baker Bros. Advisors’ latest increase in its holding of Mirati Therapeutics, Inc. (NASDAQ:MRTX) was not uncalled for. Not only has the stock performed well, but the biopharmaceutical company – which develops novel targeted therapeutics to be used in the treatment of cancer – seems to have a bright future. This has earned the company a “strong buy” consensus broker rating from the analysts at Zacks, who estimate the stock will hit $30.40 in a 12-month period.

Disclosure: none.