Kala Pharmaceuticals (KALA) Shares Up 7.4% After Insider Buying Activity

Kala Pharmaceuticals Inc (NASDAQ:KALA)’s share price shot up 7.4% during mid-day trading on Monday following insider buying activity. The company traded as high as $8.49 and last traded at $8.30. 1,185,469 shares changed hands during trading, an increase of 344% from the average session volume of 266,862 shares. The stock had previously closed at $7.73.

Specifically, Director Ra Capital Healthcare Fund Lp bought 2,424,242 shares of the firm’s stock in a transaction that occurred on Wednesday, October 3rd. The shares were purchased at an average price of $8.25 per share, with a total value of $19,999,996.50. The transaction was disclosed in a filing with the SEC, which is available at this link. 35.58% of the stock is currently owned by corporate insiders.

Several research firms recently issued reports on KALA. Wedbush reissued an “outperform” rating and set a $47.00 target price on shares of Kala Pharmaceuticals in a research note on Wednesday, June 20th. BidaskClub raised Kala Pharmaceuticals from a “sell” rating to a “hold” rating in a research note on Thursday, July 26th. HC Wainwright set a $35.00 target price on Kala Pharmaceuticals and gave the stock a “buy” rating in a research note on Friday, August 10th. Wells Fargo & Co reissued a “buy” rating on shares of Kala Pharmaceuticals in a research note on Thursday, August 23rd. Finally, Zacks Investment Research raised Kala Pharmaceuticals from a “hold” rating to a “buy” rating and set a $14.00 target price on the stock in a research note on Wednesday, July 18th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and four have assigned a buy rating to the stock. Kala Pharmaceuticals has an average rating of “Hold” and a consensus price target of $29.40.

The company has a quick ratio of 9.79, a current ratio of 9.79 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $242.73 million, a price-to-earnings ratio of -1.42 and a beta of -1.07.

Kala Pharmaceuticals (NASDAQ:KALA) last issued its quarterly earnings results on Thursday, August 9th. The company reported ($0.60) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.50) by ($0.10). On average, analysts forecast that Kala Pharmaceuticals Inc will post -2.19 earnings per share for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of New York Mellon Corp increased its holdings in Kala Pharmaceuticals by 23.2% during the 2nd quarter. Bank of New York Mellon Corp now owns 41,327 shares of the company’s stock worth $568,000 after purchasing an additional 7,784 shares during the period. Paloma Partners Management Co purchased a new stake in Kala Pharmaceuticals during the 2nd quarter worth about $152,000. Rhumbline Advisers purchased a new stake in Kala Pharmaceuticals during the 2nd quarter worth about $148,000. Wedbush Securities Inc. increased its holdings in Kala Pharmaceuticals by 81.6% during the 2nd quarter. Wedbush Securities Inc. now owns 56,420 shares of the company’s stock worth $775,000 after purchasing an additional 25,350 shares during the period. Finally, Alps Advisors Inc. purchased a new stake in Kala Pharmaceuticals during the 2nd quarter worth about $489,000. Institutional investors own 72.19% of the company’s stock.

Kala Pharmaceuticals Company Profile (NASDAQ:KALA)

Kala Pharmaceuticals, Inc, a biopharmaceutical company, focuses on the development and commercialization of therapies using its proprietary nanoparticle-based Mucus Penetrating Particles (MPP) technology for the treatment of eye diseases. Its product candidates include KPI-121 1.0%, which has completed Phase III clinical trials for the treatment of inflammation and pain following ocular surgery; INVELTYS that has completed Phase III clinical trials for the temporary relief of the signs and symptoms of dry eye disease; and KPI-285, a MPP receptor tyrosine kinase inhibitor program, which is in preclinical studies for the treatment of retinal diseases.

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