Forte Biosciences (NASDAQ:FBRX) Stock Rating Lowered by Evercore

Key Points

• Evercore downgraded Forte Biosciences from “strong buy” to “hold,” joining TD Cowen and Brookline Capital Markets. Analysts now have a consensus “hold” rating and a $72.50 price target.
• Forte shares opened at $76.65, near their 12-month high of $76.68, after argenx agreed to acquire the company for $77 per share in cash. The deal gives argenx access to Forte’s experimental autoimmune therapy FB102.
• Shareholder-rights law firms are investigating the acquisition’s price and sale process, creating potential litigation or delay risk. Forte also recently reported a quarterly EPS loss of $1.24, missing the $1.16 consensus estimate.

Forte Biosciences (NASDAQ:FBRX - Get Free Report) was downgraded by equities researchers at Evercore from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Several other research firms have also issued reports on FBRX. TD Cowen lowered Forte Biosciences from a "strong-buy" rating to a "hold" rating in a research report on Monday. Brookline Capital Markets downgraded shares of Forte Biosciences from a "strong-buy" rating to a "hold" rating in a research report on Monday. Weiss Ratings restated a "sell (d-)" rating on shares of Forte Biosciences in a research note on Wednesday, July 8th. Wall Street Zen cut shares of Forte Biosciences from a "sell" rating to a "strong sell" rating in a report on Saturday. Finally, Barclays downgraded shares of Forte Biosciences from an "overweight" rating to an "equal weight" rating and upped their target price for the stock from $74.00 to $77.00 in a research note on Tuesday. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Forte Biosciences presently has a consensus rating of "Hold" and a consensus price target of $72.50.

Forte Biosciences Trading Up 0.2%

Shares of NASDAQ:FBRX opened at $76.65 on Monday. The stock has a fifty day simple moving average of $28.43 and a two-hundred day simple moving average of $28.59. The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of -16.52 and a beta of 2.85. Forte Biosciences has a 12-month low of $9.10 and a 12-month high of $76.68.

Forte Biosciences (NASDAQ:FBRX - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($1.24) EPS for the quarter, missing the consensus estimate of ($1.16) by ($0.08). As a group, equities research analysts predict that Forte Biosciences will post -4.27 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC bought a new position in shares of Forte Biosciences during the fourth quarter valued at $27,000. Bank of America Corp DE increased its holdings in Forte Biosciences by 5,641.8% in the 3rd quarter. Bank of America Corp DE now owns 3,158 shares of the company's stock worth $47,000 after buying an additional 3,103 shares in the last quarter. Dimensional Fund Advisors LP bought a new stake in Forte Biosciences in the 3rd quarter worth about $161,000. Jane Street Group LLC purchased a new position in Forte Biosciences in the 4th quarter worth about $228,000. Finally, Citadel Advisors LLC purchased a new position in Forte Biosciences in the 3rd quarter worth about $234,000. Hedge funds and other institutional investors own 77.63% of the company's stock.

Trending Headlines about Forte Biosciences

Here are the key news stories impacting Forte Biosciences this week:

• Positive Sentiment: argenx will acquire all outstanding Forte shares for $77 in cash, giving investors a clear deal-value reference and significantly repricing FBRX above its pre-announcement level. The acquisition also gives argenx access to Forte’s experimental autoimmune therapy FB102, strengthening its immunology pipeline. Reuters article
• Positive Sentiment: The all-cash structure reduces exposure to biotechnology development risk for Forte shareholders, while the premium and strategic interest from argenx provide support for the current valuation. Proactive Investors article
• Neutral Sentiment: FBRX trading volume has been substantially above its average, consistent with merger-related positioning. A significant increase in put-option activity also indicates that some traders are hedging against deal or market risk rather than simply betting on further gains.
• Negative Sentiment: Several shareholder-rights law firms, including Kahn Swick & Foti, are investigating whether the $77 consideration and sale process adequately protect shareholders. Similar investigations by Halper Sadeh, Ademi and Monteverde could create litigation, delay or renegotiation risk, although these announcements do not by themselves indicate that the transaction will fail. Kahn Swick & Foti investigation

About Forte Biosciences

Forte Biosciences, Inc is a clinical-stage biotechnology company focused on developing innovative treatments to restore skin health by targeting the underlying biology of the skin barrier and microbiome. Headquartered in San Diego, California, Forte leverages proprietary platforms to discover and advance topical live biotherapeutic products and skin barrier therapies aimed at addressing serious dermatological conditions.

The company's lead product candidate, FB-401, is a topical live biotherapeutic formulation designed to rebalance the skin microbiome in patients with atopic dermatitis.

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