Boston, MA 08/21/2114 (wallstreetpr) – A global oncology company, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) Director Alexander Denner had resorted to buying the company shares from the open market indirectly on August 15. The acquisition of shares was done for Sarissa Capital for two of its funds. Interestingly, the move comes in the wake of a Sell call given by Citigroup (NYSE:C) recently.
There were two transactions of buying of shares that had been disclosed to the Securities and Exchange Commission or the SEC through a filing. The company Director Alexander Denner came in the category of 10% owner.
He had acquired 615,466 shares for its Sarissa Capital Domestic Fund LP on August 15 at the rate of $5.83 a share by spending $3.59 million. Following the transaction, the fund would have a total of approximately 7.8 million shares in the Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA).
Similarly, another fund from the same group, Sarissa Capital Offshore Master Fund LP had resorted to buying 234,534 shares at an average price of $5.83 on the same day for approximately $1.37 million. As a result of the transaction, the fund had increased its holding to about 5.05 million shares in the company.
The purchase price of $5.83 indicates that the fund had paid about 171.2% more than the yearly low price of $2.15. However, they have got the shares at a discount of 74.7% compared to the 52-week high price of $23.
At least two brokerages have reduced their price target on Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) shares recently. While Citigroup had slashed its price objective to $5 from $7, JMP Securities had reduced its price target on the company’s stock to $7 from $8. This meant that the two funds had paid 83 cents more than the Citigroup (NYSE:C)’s revised price objective while they paid $1.17 lower than JMP’s new price tag.
While ten analysts’ have preferred to advice investors with a Hold rating, four analysts’ have found the stock to be a fit case for Sale and eight analysts’ rated the stock as a Buy. Therefore, the consensus is in favor Hold with a consensus price tag of $6.75.