Merck & Co. Inc. Invests $9.04 Billion in Sutro Biopharma, Inc. $STRO

Key Points

• Merck & Co. disclosed a new 272,351-share stake in Sutro Biopharma, valued at approximately $9.04 billion and representing 1.64% of the biotech company. Institutional investors collectively own nearly 97% of Sutro’s shares.
• Sutro’s latest quarterly results missed expectations, with an adjusted loss of $2.33 per share versus the projected $2.19 loss, while revenue of $9.84 million fell short of the $11.96 million consensus estimate.
• Analysts remain broadly bullish, with a consensus “Buy” rating and a $47.30 price target, despite recent target reductions by some firms. Shares were reported up 8.8%, opening at $22.28.

Merck & Co. Inc. purchased a new stake in shares of Sutro Biopharma, Inc. (NASDAQ:STRO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 272,351 shares of the company's stock, valued at approximately $9,042,053,000. Sutro Biopharma accounts for about 1.7% of Merck & Co. Inc.'s portfolio, making the stock its 7th biggest holding. Merck & Co. Inc. owned about 1.64% of Sutro Biopharma at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Velan Capital Investment Management LP raised its holdings in Sutro Biopharma by 2.0% during the 3rd quarter. Velan Capital Investment Management LP now owns 3,120,000 shares of the company's stock worth $2,709,000 after purchasing an additional 60,000 shares during the last quarter. UBS Group AG boosted its stake in shares of Sutro Biopharma by 14.0% in the 3rd quarter. UBS Group AG now owns 1,845,839 shares of the company's stock valued at $1,602,000 after purchasing an additional 226,955 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of Sutro Biopharma by 1,052.8% in the 1st quarter. AQR Capital Management LLC now owns 1,320,917 shares of the company's stock valued at $859,000 after purchasing an additional 1,206,330 shares during the last quarter. Affinity Asset Advisors LLC grew its position in shares of Sutro Biopharma by 42.9% during the 1st quarter. Affinity Asset Advisors LLC now owns 1,069,519 shares of the company's stock worth $26,642,000 after buying an additional 321,137 shares during the period. Finally, Orbimed Advisors LLC bought a new stake in shares of Sutro Biopharma during the first quarter worth approximately $19,956,000. Institutional investors own 96.99% of the company's stock.

Sutro Biopharma Trading Up 8.8%

Shares of Sutro Biopharma stock opened at $22.28 on Tuesday. The company has a market capitalization of $369.42 million, a PE ratio of -2.02 and a beta of 1.55. Sutro Biopharma, Inc. has a 12 month low of $7.15 and a 12 month high of $43.85. The stock's fifty day simple moving average is $26.80 and its 200 day simple moving average is $26.07.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported ($2.33) earnings per share for the quarter, missing the consensus estimate of ($2.19) by ($0.14). The business had revenue of $9.84 million during the quarter, compared to analysts' expectations of $11.96 million. Analysts predict that Sutro Biopharma, Inc. will post -8.83 EPS for the current fiscal year.

Analysts Set New Price Targets

STRO has been the topic of several analyst reports. HC Wainwright increased their price objective on shares of Sutro Biopharma from $28.00 to $50.00 and gave the company a "buy" rating in a report on Friday, May 15th. Truist Financial initiated coverage on shares of Sutro Biopharma in a report on Thursday, June 11th. They set a "buy" rating and a $50.00 target price for the company. Barclays began coverage on Sutro Biopharma in a research note on Thursday, May 28th. They issued an "overweight" rating and a $56.00 price target on the stock. Citizens Jmp reduced their price target on Sutro Biopharma from $41.00 to $34.00 and set a "market outperform" rating on the stock in a research report on Thursday, August 13th. Finally, Citigroup reiterated a "market outperform" rating on shares of Sutro Biopharma in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $47.30.

About Sutro Biopharma

Sutro Biopharma, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of novel biologic drug candidates in the fields of oncology and immunology. The company leverages a proprietary cell-free protein synthesis platform, XpressCF™, to design and produce complex, multi-specific proteins that include antibody-drug conjugates, bispecific antibodies, and cytokine fusion proteins. This platform enables rapid generation and optimization of protein therapeutics that may not be feasible with traditional cell-based expression systems.

Founded in 2003 and headquartered in South San Francisco, California, Sutro Biopharma has built a pipeline of immuno-oncology candidates in various stages of preclinical and clinical development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source