Keros Therapeutics (NASDAQ:KROS) Downgraded by Wall Street Zen to Strong Sell

Key Points

• Wall Street Zen downgraded Keros Therapeutics to “strong sell” from “sell,” while the broader analyst consensus remains “hold” with a $20.50 target price.
• KROS opened at $11.28, near its 52-week low, and recently reported a quarterly loss of $1.45 per share—worse than the $1.34 consensus estimate.
• The company authorized a $5 million share-repurchase program, allowing it to buy back up to 2.3% of outstanding shares; institutional investors own 71.56% of the stock.

Keros Therapeutics (NASDAQ:KROS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently commented on the stock. Leerink Partners dropped their price objective on shares of Keros Therapeutics from $30.00 to $23.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 4th. Wells Fargo & Company decreased their target price on shares of Keros Therapeutics from $20.00 to $18.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Zacks Research upgraded shares of Keros Therapeutics from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Keros Therapeutics in a report on Wednesday, August 12th. Finally, HC Wainwright reaffirmed a "buy" rating and issued a $20.00 price objective on shares of Keros Therapeutics in a report on Tuesday, August 4th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $20.50.

Keros Therapeutics Stock Performance

NASDAQ KROS opened at $11.28 on Friday. The company has a market cap of $223.68 million, a PE ratio of -3.05 and a beta of 1.12. Keros Therapeutics has a 52-week low of $9.69 and a 52-week high of $22.55. The firm's 50 day moving average price is $11.23 and its 200-day moving average price is $11.05.

Keros Therapeutics (NASDAQ:KROS - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The company reported ($1.45) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.34) by ($0.11). Keros Therapeutics had a negative net margin of 256.60% and a negative return on equity of 21.40%. On average, analysts forecast that Keros Therapeutics will post -5.27 earnings per share for the current fiscal year.

Keros Therapeutics announced that its board has authorized a stock repurchase plan on Wednesday, September 9th that permits the company to repurchase $5.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 2.3% of its stock through open market purchases. Share repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Insider Activity

In other news, insider Lorena Raquel Lerner sold 3,568 shares of Keros Therapeutics stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $10.29, for a total transaction of $36,714.72. Following the sale, the insider owned 27,559 shares of the company's stock, valued at approximately $283,582.11. The trade was a 11.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 5,343 shares of company stock worth $54,985. 12.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd raised its position in Keros Therapeutics by 254.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,624 shares of the company's stock valued at $33,000 after purchasing an additional 1,166 shares during the period. Legal & General Group Plc acquired a new position in shares of Keros Therapeutics in the 2nd quarter valued at $90,000. PDT Partners LLC purchased a new position in shares of Keros Therapeutics during the 2nd quarter worth $122,000. Lazard Asset Management LLC purchased a new position in shares of Keros Therapeutics during the 1st quarter worth $129,000. Finally, Canada Pension Plan Investment Board purchased a new position in shares of Keros Therapeutics during the 2nd quarter worth $247,000. 71.56% of the stock is currently owned by hedge funds and other institutional investors.

Keros Therapeutics Company Profile

Keros Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing treatments for diseases caused by dysfunctional signaling in the transforming growth factor-beta (TGF-β) superfamily of proteins. The company uses its research platform to design therapies intended to regulate signaling pathways involved in blood-cell production, bone health and cardiovascular function.

Keros' investigational pipeline has included elritercept (KER-050), an activin receptor type IIA ligand trap being studied for hematologic conditions such as lower-risk myelodysplastic syndromes and myelofibrosis.

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