Cue Biopharma (NASDAQ:CUE) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Cue Biopharma to “strong sell” from “sell,” although the broader analyst consensus remains “hold” with an average price target of $83.
• Cue Biopharma reported a steep quarterly loss of $24.14 per share, far below the $1.69 consensus estimate, despite revenue of $7.88 million exceeding expectations.
• The stock opened at $31.41, with a market capitalization of approximately $228 million; insiders have sold 72,715 shares worth about $2.04 million over the past 90 days, primarily to cover tax obligations from equity awards.

Cue Biopharma (NASDAQ:CUE - Get Free Report) was downgraded by Wall Street Zen from a "sell" rating to a "strong sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other brokerages have also commented on CUE. Zacks Research upgraded shares of Cue Biopharma to a "hold" rating in a research report on Monday, September 21st. B. Riley Financial began coverage on shares of Cue Biopharma in a report on Friday, September 18th. They issued a "buy" rating and a $83.00 price target for the company. Finally, Weiss Ratings cut shares of Cue Biopharma from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $83.00.

Cue Biopharma Price Performance

Cue Biopharma stock opened at $31.41 on Friday. Cue Biopharma has a 12 month low of $4.97 and a 12 month high of $45.50. The business has a 50 day simple moving average of $29.33 and a 200-day simple moving average of $94.34. The stock has a market capitalization of $228.04 million, a PE ratio of -1.16 and a beta of 2.45.

Cue Biopharma (NASDAQ:CUE - Get Free Report) last announced its quarterly earnings data on Friday, August 14th. The company reported ($24.14) EPS for the quarter, missing analysts' consensus estimates of ($1.69) by ($22.45). Cue Biopharma had a negative net margin of 435.83% and a negative return on equity of 620.06%. The firm had revenue of $7.88 million during the quarter, compared to analyst estimates of $3.00 million. As a group, equities research analysts anticipate that Cue Biopharma will post -32.12 EPS for the current year.

Insider Buying and Selling at Cue Biopharma

In related news, VP Michael Vincent Meluzio sold 5,628 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $30.09, for a total value of $169,346.52. Following the sale, the vice president directly owned 48,961 shares in the company, valued at $1,473,236.49. The trade was a 10.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sumita Ray sold 8,829 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $30.09, for a total transaction of $265,664.61. Following the completion of the sale, the insider directly owned 118,545 shares in the company, valued at approximately $3,567,019.05. The trade was a 6.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 72,715 shares of company stock valued at $2,041,555. Insiders own 14.56% of the company's stock.

Hedge Funds Weigh In On Cue Biopharma

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CUE. Citadel Advisors LLC increased its stake in shares of Cue Biopharma by 301.8% during the 2nd quarter. Citadel Advisors LLC now owns 25,633 shares of the company's stock worth $809,000 after purchasing an additional 38,333 shares in the last quarter. Seven Fleet Capital Management LP acquired a new stake in Cue Biopharma during the 2nd quarter valued at $338,000. Bank of America Corp DE acquired a new stake in Cue Biopharma during the 2nd quarter valued at $219,000. ADAR1 Capital Management LLC purchased a new position in Cue Biopharma during the second quarter worth $1,742,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in Cue Biopharma during the second quarter worth $83,000. Institutional investors and hedge funds own 35.04% of the company's stock.

About Cue Biopharma

Cue Biopharma, Inc is a clinical-stage biotechnology company developing therapeutics that selectively activate and regulate antigen-specific T cells inside the body. Its approach is designed to direct the immune system toward cancer cells while potentially reducing the broad immune activation and toxicity associated with conventional immunotherapies.

The company's proprietary Immuno-STAT (Selective Targeting of Antigens for Remodeling of T cells) platform uses biologic molecules that combine peptide-major histocompatibility complex components with immune-modulating signals.

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