Capricor Therapeutics (NASDAQ:CAPR) Stock Rating Lowered by Roth Capital

Key Points

• Roth Capital downgraded Capricor Therapeutics to “neutral” from “buy” and set a $7 price target, implying virtually no upside from the stock’s prior close. The broader analyst consensus remains “Moderate Buy,” with a $44.33 average target.
• Capricor shares fell sharply to $7.04 in heavy trading, well below their 52-week high of $40.37. The company also reported a quarterly loss of $0.59 per share, missing analysts’ expectations.
• Regulatory uncertainty is weighing on the company’s outlook: FDA staff questioned whether deramiocel’s clinical evidence proves effectiveness for Duchenne muscular dystrophy-related cardiomyopathy ahead of an advisory committee meeting. Multiple law firms have also announced investor investigations, adding potential legal and reputational risks.

Capricor Therapeutics (NASDAQ:CAPR - Get Free Report) was downgraded by investment analysts at Roth Capital from a "buy" rating to a "neutral" rating in a research report issued on Monday. They presently have a $7.00 target price on the biotechnology company's stock. Roth Capital's target price suggests a potential downside of 0.64% from the company's previous close.

CAPR has been the subject of several other reports. Oppenheimer reissued an "outperform" rating on shares of Capricor Therapeutics in a report on Monday. HC Wainwright reaffirmed a "buy" rating and issued a $60.00 price objective on shares of Capricor Therapeutics in a research note on Wednesday, May 13th. LADENBURG THALM/SH SH upgraded shares of Capricor Therapeutics to a "strong-buy" rating in a research report on Thursday, June 25th. B. Riley Financial restated a "neutral" rating and issued a $10.00 price target on shares of Capricor Therapeutics in a research report on Monday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Capricor Therapeutics in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $44.33.

Capricor Therapeutics Price Performance

Shares of Capricor Therapeutics stock traded down $12.65 during midday trading on Monday, hitting $7.04. The company had a trading volume of 28,135,510 shares, compared to its average volume of 1,493,261. The stock has a market cap of $407.99 million, a PE ratio of -3.04 and a beta of 0.42. Capricor Therapeutics has a 1-year low of $4.30 and a 1-year high of $40.37. The business's 50 day simple moving average is $25.29 and its two-hundred day simple moving average is $27.48.

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

Insiders Place Their Bets

In other news, CFO Anthony Bergmann sold 24,100 shares of Capricor Therapeutics stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $30.38, for a total value of $732,158.00. Following the completion of the transaction, the chief financial officer owned 11,223 shares of the company's stock, valued at $340,954.74. The trade was a 68.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In the last three months, insiders sold 50,000 shares of company stock valued at $1,551,658. Company insiders own 9.20% of the company's stock.

Hedge Funds Weigh In On Capricor Therapeutics

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

Key Capricor Therapeutics News

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

• Positive Sentiment: Capricor said it provided comments on the FDA briefing materials and remains engaged in the review of its biologics license application for deramiocel, an investigational treatment for Duchenne muscular dystrophy-associated cardiomyopathy. The upcoming review still provides an opportunity for the company to address questions about the therapy’s data and risk-benefit profile. Capricor comments on FDA briefing materials
• Neutral Sentiment: B. Riley reaffirmed its “neutral” rating but maintained a $10 price target, indicating potential upside from recently depressed levels while reflecting continued uncertainty around regulatory approval.
• Negative Sentiment: FDA staff reviewers raised concerns that the clinical evidence may not adequately demonstrate deramiocel’s effectiveness for DMD-related cardiomyopathy. The FDA briefing documents were released ahead of the July 29 Cellular, Tissue, and Gene Therapies Advisory Committee meeting, increasing uncertainty over approval and the company’s commercial outlook. Reuters FDA briefing report
• Negative Sentiment: STAT News reported that the FDA concluded deramiocel did not meet the objectives of a Phase 3 trial, contradicting Capricor’s earlier claims. That report was cited by law firms announcing investigations into whether Capricor or its executives misrepresented or failed to disclose material information to investors. Holzer and Holzer investor alert
• Negative Sentiment: Multiple law firms announced securities investigations, potentially adding litigation and reputational risk. Separately, public accusations from Martin Shkreli alleged fraud involving patient data; those allegations are unproven but may further pressure investor sentiment.

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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