Gossamer Bio (NASDAQ:GOSS) Shares Gap Up - Still a Buy?

Key Points

• Shares of Gossamer Bio gapped up from $3.20 to $3.37 before trading, and analysts currently have an average rating of “Buy” with a price target of $8.50.
• The company reported better-than-expected earnings with ($0.17) EPS, surpassing estimates of ($0.18) and generating revenue of $11.49 million compared to the $4.12 million consensus estimate.
• Gossamer Bio has seen significant institutional trading, with hedge funds owning 81.23% of its stock and several firms increasing their positions in recent months.

Shares of Gossamer Bio, Inc. (NASDAQ:GOSS - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $3.20, but opened at $3.37. Gossamer Bio shares last traded at $3.12, with a volume of 345,411 shares traded.

Analyst Upgrades and Downgrades

GOSS has been the topic of several research analyst reports. Wall Street Zen upgraded Gossamer Bio from a "sell" rating to a "hold" rating in a research note on Saturday. Scotiabank initiated coverage on Gossamer Bio in a report on Monday, July 14th. They set a "sector outperform" rating and a $11.00 target price for the company. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Gossamer Bio in a report on Thursday, September 11th. Finally, Wedbush lifted their target price on Gossamer Bio from $4.00 to $5.00 and gave the stock an "outperform" rating in a report on Wednesday, August 6th. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Gossamer Bio currently has an average rating of "Buy" and an average price target of $8.50.

Gossamer Bio Price Performance

The company has a market capitalization of $701.47 million, a price-to-earnings ratio of -4.96 and a beta of 1.95. The stock has a fifty day simple moving average of $2.16 and a 200-day simple moving average of $1.49. The company has a debt-to-equity ratio of 6.70, a current ratio of 4.40 and a quick ratio of 4.40.

Gossamer Bio (NASDAQ:GOSS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported ($0.17) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.18) by $0.01. The company had revenue of $11.49 million during the quarter, compared to the consensus estimate of $4.12 million. Gossamer Bio had a negative return on equity of 1,774.72% and a negative net margin of 344.81%. On average, equities research analysts anticipate that Gossamer Bio, Inc. will post -0.28 EPS for the current year.

Institutional Trading of Gossamer Bio

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Drive Wealth Management LLC increased its position in shares of Gossamer Bio by 52.7% during the second quarter. Drive Wealth Management LLC now owns 25,474 shares of the company's stock worth $31,000 after purchasing an additional 8,797 shares in the last quarter. Legal & General Group Plc purchased a new stake in shares of Gossamer Bio during the second quarter worth approximately $26,000. Banco BTG Pactual S.A. purchased a new stake in shares of Gossamer Bio during the second quarter worth approximately $27,000. Lazard Asset Management LLC increased its position in shares of Gossamer Bio by 53.9% during the second quarter. Lazard Asset Management LLC now owns 67,362 shares of the company's stock worth $82,000 after purchasing an additional 23,601 shares in the last quarter. Finally, Choreo LLC increased its position in shares of Gossamer Bio by 58.2% during the second quarter. Choreo LLC now owns 76,111 shares of the company's stock worth $94,000 after purchasing an additional 28,000 shares in the last quarter. 81.23% of the stock is currently owned by hedge funds and other institutional investors.

Gossamer Bio Company Profile

Gossamer Bio, Inc, a clinical-stage biopharmaceutical company, focuses on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension (PAH) in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony-stimulatin factor 1 receptor and c-KIT inhibitor, which is in Phase 3 clinical trial for the treatment of PAH.

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