Capricor Therapeutics (NASDAQ:CAPR) Lowered to "Neutral" Rating by Cantor Fitzgerald

Key Points

• Cantor Fitzgerald downgraded Capricor Therapeutics to “Neutral” from “Overweight” and set a $3.50 price target, implying 47.53% downside from the prior close.
• Analyst sentiment has broadly weakened: B. Riley, Piper Sandler and Ladenburg Thalmann also moved to “Neutral,” leaving the stock with a consensus “Hold” rating from one Buy, eight Holds and one Sell.
• Capricor reported a quarterly loss of $0.59 per share, missing estimates by $0.04, while its CFO sold 24,100 shares at an average price of $30.38; insiders sold 50,000 shares over the past quarter.

Capricor Therapeutics (NASDAQ:CAPR - Get Free Report) was downgraded by investment analysts at Cantor Fitzgerald from an "overweight" rating to a "neutral" rating in a research note issued on Thursday. They currently have a $3.50 target price on the biotechnology company's stock. Cantor Fitzgerald's target price points to a potential downside of 47.53% from the stock's previous close.

Several other equities research analysts have also issued reports on CAPR. B. Riley Financial lowered shares of Capricor Therapeutics from a "buy" rating to a "neutral" rating and set a $10.00 target price for the company. in a research report on Monday. Oppenheimer reaffirmed an "outperform" rating on shares of Capricor Therapeutics in a report on Monday. Piper Sandler lowered shares of Capricor Therapeutics from an "overweight" rating to a "neutral" rating in a research report on Thursday. LADENBURG THALM/SH SH cut Capricor Therapeutics from a "buy" rating to a "neutral" rating in a research note on Thursday. Finally, HC Wainwright restated a "neutral" rating on shares of Capricor Therapeutics in a research report on Monday. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $34.75.

Capricor Therapeutics Stock Up 1.5%

CAPR opened at $6.67 on Thursday. The company has a market capitalization of $386.27 million, a price-to-earnings ratio of -2.88 and a beta of 0.42. The firm has a 50-day moving average price of $24.01 and a 200-day moving average price of $27.07. Capricor Therapeutics has a twelve month low of $4.30 and a twelve month high of $40.37.

Capricor Therapeutics (NASDAQ:CAPR - Get Free Report) last released its quarterly earnings data on Tuesday, May 12th. The biotechnology company reported ($0.59) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.04). On average, sell-side analysts expect that Capricor Therapeutics will post -0.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Anthony Bergmann sold 24,100 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $30.38, for a total transaction of $732,158.00. Following the sale, the chief financial officer owned 11,223 shares in the company, valued at $340,954.74. This represents a 68.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Over the last quarter, insiders have sold 50,000 shares of company stock worth $1,551,658. Corporate insiders own 9.20% of the company's stock.

Institutional Trading of Capricor Therapeutics

A number of hedge funds have recently bought and sold shares of CAPR. Suvretta Capital Management LLC bought a new position in Capricor Therapeutics in the fourth quarter worth approximately $51,533,000. Tang Capital Management LLC bought a new stake in shares of Capricor Therapeutics during the 4th quarter valued at $49,062,000. RA Capital Management L.P. purchased a new stake in shares of Capricor Therapeutics in the 4th quarter worth $43,516,000. Darwin Global Management Ltd. purchased a new stake in shares of Capricor Therapeutics in the 4th quarter worth $23,168,000. Finally, SB Capital Management Inc bought a new position in Capricor Therapeutics in the 4th quarter worth $11,544,000. Hedge funds and other institutional investors own 21.68% of the company's stock.

Trending Headlines about Capricor Therapeutics

Here are the key news stories impacting Capricor Therapeutics this week:

• Positive Sentiment: Peer-reviewed data support deramiocel: The Lancet published HOPE-3 Phase 3 results showing that deramiocel slowed upper-limb function decline by 54% versus placebo and produced reported cardiac benefits. Capricor said the publication independently validated the trial’s design, methodology and findings. The Lancet Publishes HOPE-3 Data for Capricor Therapeutics' Deramiocel in Duchenne Muscular Dystrophy
• Neutral Sentiment: FDA panel vote is not the final agency decision: Independent advisers recommended against approval of deramiocel for the Duchenne heart-disease indication. The FDA is not required to follow the panel, but the vote is a significant regulatory obstacle. FDA panel votes against Capricor's Duchenne heart disease therapy
• Negative Sentiment: FDA briefing documents challenged the company’s evidence: Regulators concluded that deramiocel did not demonstrate statistically significant benefits on its prespecified cardiac endpoint, undermining investor confidence despite Capricor’s positive interpretation of the HOPE-3 data.
• Negative Sentiment: Analysts turned more cautious: B. Riley and Roth Capital downgraded the stock, followed by Alliance Global Partners’ move from Buy to Neutral with a $7 price target. The downgrades reflect increased uncertainty around approval and commercial prospects.
• Negative Sentiment: Multiple securities-law investigations were announced: Rosen Law Firm, Hagens Berman, Glancy Prongay Wolff, Levi & Korsinsky, Bragar Eagel & Squire, Block & Leviton and Kirby McInerney are soliciting investors or investigating whether Capricor made misleading statements about deramiocel’s efficacy and trial results. These announcements add reputational and potential litigation risk, although no wrongdoing has been established.

Capricor Therapeutics Company Profile

Capricor Therapeutics, Inc is a clinical-stage biotechnology company focused on the development of cell and exosome-based therapeutics for cardiovascular and rare diseases. Headquartered in Beverly Hills, California, the company leverages proprietary cardiosphere-derived cell (CDC) technology to address conditions characterized by inflammation, fibrosis, and tissue degeneration. Since its founding, Capricor has advanced its lead candidate through multiple clinical trials and has built a pipeline that spans both cell therapy and extracellular vesicle (exosome) platforms.

The company's leading product candidate, CAP-1002, comprises allogeneic CDCs and is being evaluated in indications such as Duchenne muscular dystrophy (DMD) and COVID-19-related heart injury.

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