Sutro Biopharma (NASDAQ:STRO) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sutro Biopharma to “Strong Sell” from “Sell,” although the broader analyst consensus remains “Buy” with an average price target of $47.30.
• Sutro shares opened at $15.34, well below their 12-month high of $43.85. The company also missed quarterly expectations, reporting a loss of $2.33 per share versus the estimated loss of $2.19 and revenue of $9.84 million versus $11.96 million expected.
• Institutional ownership stands at 96.99%, with several funds—including Merck, Perceptive Advisors, and Orbimed Advisors—recently initiating or expanding positions in the clinical-stage cancer therapeutics developer.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) was downgraded by research 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 brokerages also recently weighed in on STRO. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sutro Biopharma in a research note on Wednesday, August 5th. Truist Financial initiated coverage on Sutro Biopharma in a research report on Thursday, June 11th. They issued a "buy" rating and a $50.00 price target on the stock. Mizuho upgraded Sutro Biopharma to a "strong-buy" rating in a research note on Wednesday. Barclays assumed coverage on Sutro Biopharma in a research report on Thursday, May 28th. They set an "overweight" rating and a $56.00 price objective for the company. Finally, Stifel Nicolaus set a $48.00 price objective on Sutro Biopharma and gave the company a "buy" rating in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $47.30.

Sutro Biopharma Trading Down 0.9%

Shares of STRO stock opened at $15.34 on Friday. Sutro Biopharma has a 12 month low of $7.15 and a 12 month high of $43.85. The stock has a market cap of $254.34 million, a PE ratio of -1.28 and a beta of 1.48. The company's fifty day moving average price is $21.79 and its 200-day moving average price is $26.45.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last released its earnings results on Wednesday, August 12th. The company reported ($2.33) earnings per share for the quarter, missing analysts' consensus estimates of ($2.19) by ($0.14). The firm had revenue of $9.84 million for the quarter, compared to analysts' expectations of $11.96 million. On average, sell-side analysts forecast that Sutro Biopharma will post -8.03 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Merck & Co. Inc. bought a new position in Sutro Biopharma in the 2nd quarter valued at approximately $9,042,053. Perceptive Advisors LLC purchased a new stake in Sutro Biopharma during the 1st quarter valued at $17,818,000. Affinity Asset Advisors LLC increased its holdings in shares of Sutro Biopharma by 42.9% in the 1st quarter. Affinity Asset Advisors LLC now owns 1,069,519 shares of the company's stock worth $26,642,000 after purchasing an additional 321,137 shares in the last quarter. Seven Fleet Capital Management LP bought a new stake in shares of Sutro Biopharma in the 2nd quarter worth $5,283,000. Finally, Orbimed Advisors LLC purchased a new position in shares of Sutro Biopharma in the first quarter worth $19,956,000. Institutional investors own 96.99% of the company's stock.

About Sutro Biopharma

Sutro Biopharma, Inc is a clinical-stage biopharmaceutical company focused on developing targeted cancer therapies. The company uses its proprietary XpressCF cell-free protein synthesis platform to design and manufacture antibody-drug conjugates (ADCs) and immunostimulatory antibody conjugates intended to selectively target tumor cells while limiting damage to healthy tissue.

Sutro's pipeline has included luveltamab tazevibulin, also known as luvelta or STRO-002, a folate receptor alpha-directed ADC being investigated for the treatment of ovarian and endometrial cancers.

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