Entrada Therapeutics (NASDAQ:TRDA) Reaches New 12-Month High on Earnings Beat

Key Points

• 52-week high — Entrada shares climbed as high as $16.45 after reporting an EPS of ($0.95), beating analysts' ($1.06) estimate.
• However, revenue missed at $0.88 million versus $2.92 million expected, and the company remains unprofitable with a negative net margin (~565%) and negative ROE (~39.8%).
• Analyst and insider activity — the consensus rating is "Moderate Buy" with a $19 price target, but insiders have been net sellers (82,882 shares sold in the last 90 days) while institutions own roughly 86% of the stock.

Entrada Therapeutics, Inc. (NASDAQ:TRDA - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $16.45 and last traded at $16.03, with a volume of 412914 shares changing hands. The stock had previously closed at $15.75.

The company reported ($0.95) earnings per share for the quarter, topping analysts' consensus estimates of ($1.06) by $0.11. The firm had revenue of $0.88 million for the quarter, compared to analyst estimates of $2.92 million. Entrada Therapeutics had a negative net margin of 565.48% and a negative return on equity of 39.83%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Oppenheimer boosted their price target on shares of Entrada Therapeutics from $21.00 to $23.00 and gave the company an "outperform" rating in a research note on Monday, April 6th. Wall Street Zen downgraded shares of Entrada Therapeutics from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Guggenheim raised shares of Entrada Therapeutics to a "strong-buy" rating in a research note on Wednesday, February 11th. Cantor Fitzgerald initiated coverage on shares of Entrada Therapeutics in a research note on Wednesday, April 1st. They set an "overweight" rating on the stock. Finally, HC Wainwright reaffirmed a "buy" rating and set a $20.00 target price on shares of Entrada Therapeutics in a research note on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Entrada Therapeutics has an average rating of "Moderate Buy" and a consensus price target of $19.00.

Insider Activity at Entrada Therapeutics

In related news, COO Nathan J. Dowden sold 15,000 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $15.33, for a total transaction of $229,950.00. Following the completion of the sale, the chief operating officer owned 198,588 shares in the company, valued at $3,044,354.04. This represents a 7.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kory James Wentworth sold 11,388 shares of the firm's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $13.02, for a total transaction of $148,271.76. Following the completion of the sale, the chief financial officer owned 121,510 shares of the company's stock, valued at $1,582,060.20. This trade represents a 8.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 82,882 shares of company stock valued at $1,169,103 in the last ninety days. Insiders own 9.49% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC lifted its position in Entrada Therapeutics by 9.8% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 17,495 shares of the company's stock valued at $176,000 after buying an additional 1,560 shares in the last quarter. Alliancebernstein L.P. increased its stake in Entrada Therapeutics by 7.1% during the third quarter. Alliancebernstein L.P. now owns 24,320 shares of the company's stock valued at $141,000 after purchasing an additional 1,620 shares during the last quarter. Great Lakes Advisors LLC increased its stake in Entrada Therapeutics by 5.5% during the fourth quarter. Great Lakes Advisors LLC now owns 43,268 shares of the company's stock valued at $445,000 after purchasing an additional 2,239 shares during the last quarter. Quadrature Capital Ltd grew its position in shares of Entrada Therapeutics by 13.5% during the fourth quarter. Quadrature Capital Ltd now owns 20,318 shares of the company's stock worth $209,000 after acquiring an additional 2,424 shares during the last quarter. Finally, First Trust Advisors LP grew its position in shares of Entrada Therapeutics by 3.6% during the second quarter. First Trust Advisors LP now owns 75,120 shares of the company's stock worth $505,000 after acquiring an additional 2,631 shares during the last quarter. 86.39% of the stock is owned by institutional investors and hedge funds.

Entrada Therapeutics Price Performance

The firm has a market cap of $622.30 million, a price-to-earnings ratio of -4.63 and a beta of -0.09. The firm's fifty day moving average is $12.91 and its two-hundred day moving average is $10.89.

About Entrada Therapeutics

Entrada Therapeutics NASDAQ: TRDA is a clinical-stage biotechnology company focused on enabling the development of protein-based therapeutics that can cross cell membranes and engage intracellular targets. Using its proprietary cell-penetrating miniature protein (CPMP) platform and intracellular targeting of proteins (iTOP) delivery technology, Entrada aims to expand the range of diseases addressable by large-molecule drugs.

The company's pipeline includes programs in rare and serious diseases where conventional biologics have limited intracellular activity.

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