Wall Street Zen Downgrades Gossamer Bio (NASDAQ:GOSS) to Sell

Key Points

• Gossamer Bio's stock rating was downgraded from "hold" to "sell" by Wall Street Zen, while other brokerages have given mixed ratings, with some rating it "outperform" and setting a target price as high as $11.00.
• The company's recent earnings report showed a revenue of $11.49 million for the quarter, considerably exceeding analysts' expectations of $4.12 million.
• Gossamer Bio currently has a high debt-to-equity ratio of 6.70 and a negative return on equity of 1,774.72%, indicating financial challenges despite some analyst optimism.

Gossamer Bio (NASDAQ:GOSS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Sunday.

Several other research firms have also recently weighed in on GOSS. Scotiabank initiated coverage on Gossamer Bio in a research report on Monday, July 14th. They set a "sector outperform" rating and a $11.00 price objective on the stock. Wedbush increased their price objective on Gossamer Bio from $4.00 to $5.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Finally, Cantor Fitzgerald reiterated an "overweight" rating on shares of Gossamer Bio in a research report on Thursday, September 11th. Five equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $8.50.

Gossamer Bio Stock Performance

GOSS traded down $0.10 during trading hours on Friday, reaching $3.07. The company's stock had a trading volume of 1,379,657 shares, compared to its average volume of 2,276,969. Gossamer Bio has a 52 week low of $0.66 and a 52 week high of $3.60. The company's 50-day moving average is $2.29 and its 200-day moving average is $1.54. The company has a debt-to-equity ratio of 6.70, a quick ratio of 4.40 and a current ratio of 4.40. The firm has a market cap of $696.92 million, a PE ratio of -4.90 and a beta of 1.95.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Legal & General Group Plc bought a new position in Gossamer Bio in the second quarter valued at about $26,000. Banco BTG Pactual S.A. bought a new position in Gossamer Bio in the second quarter valued at about $27,000. Drive Wealth Management LLC grew its position in Gossamer Bio by 52.7% in the second quarter. Drive Wealth Management LLC now owns 25,474 shares of the company's stock valued at $31,000 after acquiring an additional 8,797 shares during the last quarter. Virtu Financial LLC bought a new position in Gossamer Bio in the first quarter valued at about $38,000. Finally, ProShare Advisors LLC bought a new position in Gossamer Bio in the second quarter valued at about $48,000. Institutional investors own 81.23% of the company's stock.

About Gossamer Bio

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.