Keros Therapeutics (NASDAQ:KROS) Raised to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Keros Therapeutics from “strong sell” to “sell,” while broader analyst coverage remains mixed. The consensus rating is “Hold,” with an average price target of $20.50.
• Keros shares opened at $11.95, well below the consensus target, but the company reported a quarterly loss of $1.45 per share, missing estimates of $1.34, and analysts expect a full-year loss of $5.27 per share.
• The board authorized a $5 million stock buyback, allowing repurchases of up to 2.3% of outstanding shares; institutional investors own 71.56% of the company.

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

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

Keros Therapeutics Stock Performance

Shares of Keros Therapeutics stock opened at $11.95 on Friday. The firm has a 50-day simple moving average of $11.10 and a two-hundred day simple moving average of $11.05. Keros Therapeutics has a fifty-two week low of $9.69 and a fifty-two week high of $22.55. The company has a market cap of $236.97 million, a P/E ratio of -3.23 and a beta of 1.12.

Keros Therapeutics (NASDAQ:KROS - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported ($1.45) 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%. Equities research analysts forecast that Keros Therapeutics will post -5.27 EPS for the current year.

Keros Therapeutics announced that its board has approved a stock buyback program on Wednesday, September 9th that permits the company to repurchase $5.00 million in shares. This buyback authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Keros Therapeutics

In other news, insider Lorena Raquel Lerner sold 3,568 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $10.29, for a total value of $36,714.72. Following the transaction, the insider owned 27,559 shares in the company, valued at $283,582.11. This trade represents a 11.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 5,343 shares of company stock worth $54,985 over the last ninety days. 12.60% of the stock is owned by corporate insiders.

Institutional Trading of Keros Therapeutics

Several large investors have recently made changes to their positions in the company. Squarepoint Ops LLC acquired a new stake in Keros Therapeutics during the 2nd quarter worth $334,000. Hsbc Holdings PLC raised its position in shares of Keros Therapeutics by 29.5% in the second quarter. Hsbc Holdings PLC now owns 69,926 shares of the company's stock valued at $761,000 after buying an additional 15,940 shares during the last quarter. Nantahala Capital Management LLC acquired a new stake in shares of Keros Therapeutics in the second quarter valued at about $15,091,483. Empowered Funds LLC purchased a new position in shares of Keros Therapeutics in the second quarter worth about $1,521,000. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Keros Therapeutics in the second quarter worth about $538,000. 71.56% of the stock is currently owned by hedge funds and other institutional investors.

About Keros Therapeutics

Keros Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing therapies that regulate signaling within the transforming growth factor beta (TGF-β) superfamily. These biological pathways influence blood-cell production, bone health, muscle growth and cardiovascular function, and may play a role in several serious diseases.

The company's investigational portfolio has included elritercept (KER-050), an engineered ligand trap designed to enhance red blood cell production and address anemia associated with conditions such as myelodysplastic syndromes and myelofibrosis.

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