Mereo BioPharma Group plc - Sponsored ADR (NASDAQ:MREO) Stock Has Average Target Price of $1.67

Key Points

• Analyst sentiment is mixed: Eight analysts give Mereo BioPharma a consensus “Hold” rating, split among three buys, three holds, and two sells. The average 12-month price target is $1.67, substantially above the stock’s reported $0.35 price.
• Institutional ownership is significant: Institutional investors hold 62.83% of MREO shares, with several funds—including 683 Capital Management and EcoR1 Capital—substantially increasing their positions.
• The stock remains highly volatile and unprofitable: MREO has traded between $0.20 and $2.37 over the past year, carries a market capitalization of about $55.9 million, and reported a quarterly loss of $0.01 per share, in line with estimates.

Shares of Mereo BioPharma Group plc - Sponsored ADR (NASDAQ:MREO - Get Free Report) have been given a consensus rating of "Hold" by the eight ratings firms that are presently covering the company, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $1.67.

Several analysts have weighed in on the stock. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Mereo BioPharma Group in a research note on Wednesday, August 19th. Needham & Company LLC restated a "buy" rating on shares of Mereo BioPharma Group in a research report on Tuesday, August 11th. BTIG Research reiterated a "buy" rating and issued a $1.00 price objective on shares of Mereo BioPharma Group in a report on Tuesday, August 11th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Mereo BioPharma Group in a report on Tuesday, September 29th.

Hedge Funds Weigh In On Mereo BioPharma Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. 683 Capital Management LLC increased its stake in Mereo BioPharma Group by 208.2% in the 4th quarter. 683 Capital Management LLC now owns 15,025,000 shares of the company's stock worth $6,261,000 after purchasing an additional 10,150,000 shares during the period. EcoR1 Capital LLC boosted its stake in shares of Mereo BioPharma Group by 70.2% during the first quarter. EcoR1 Capital LLC now owns 13,368,855 shares of the company's stock valued at $4,412,000 after purchasing an additional 5,512,389 shares during the period. Bank of America Corp DE boosted its stake in shares of Mereo BioPharma Group by 32,048.5% during the first quarter. Bank of America Corp DE now owns 8,195,287 shares of the company's stock valued at $2,704,000 after purchasing an additional 8,169,795 shares during the period. Defilade Capital Management L.P. bought a new position in shares of Mereo BioPharma Group in the first quarter worth approximately $2,494,000. Finally, Forefront Analytics LLC grew its holdings in shares of Mereo BioPharma Group by 302.2% in the first quarter. Forefront Analytics LLC now owns 127,778 shares of the company's stock worth $42,000 after purchasing an additional 96,010 shares during the last quarter. 62.83% of the stock is currently owned by institutional investors.

Mereo BioPharma Group Stock Performance

MREO stock opened at $0.35 on Monday. The company has a market capitalization of $55.88 million, a PE ratio of -8.75 and a beta of 0.20. Mereo BioPharma Group has a one year low of $0.20 and a one year high of $2.37. The company's 50 day moving average price is $0.31 and its two-hundred day moving average price is $0.31.

Mereo BioPharma Group (NASDAQ:MREO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.01) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.01). On average, research analysts predict that Mereo BioPharma Group will post -0.04 EPS for the current year.

About Mereo BioPharma Group

Mereo BioPharma Group plc is a clinical-stage biopharmaceutical company focused on developing medicines for rare diseases and other serious conditions with limited treatment options. The company's activities include drug discovery, clinical development and commercialization through partnerships with larger pharmaceutical companies.

Mereo's pipeline has included setrusumab, an investigational anti-sclerostin antibody being developed for osteogenesis imperfecta, a rare genetic disorder characterized by fragile bones.

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