Humacyte, Inc. (NASDAQ:HUMA) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is cautiously positive on Humacyte, with eight analysts giving it an average “Moderate Buy” rating. The average 1-year target price from recent coverage is about $7.57, though opinions remain mixed with one sell rating.
• Insiders sold shares recently: both insider Shamik J. Parikh and CFO Dale A. Sander sold 45,887 shares each at $0.90 per share. The company said the sales were to cover tax withholding obligations tied to vested equity awards.
• Recent earnings showed mixed results, as Humacyte beat EPS estimates by $0.01 but missed revenue expectations. The company remains unprofitable, and analysts expect a loss of $0.32 per share for the current fiscal year.

Shares of Humacyte, Inc. (NASDAQ:HUMA - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight research firms that are presently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation and seven have given a buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $7.5714.

Several equities analysts recently issued reports on HUMA shares. D. Boral Capital reissued a "buy" rating and issued a $25.00 target price on shares of Humacyte in a research report on Tuesday, April 28th. Weiss Ratings reissued a "sell (e+)" rating on shares of Humacyte in a research report on Friday, April 10th. HC Wainwright reissued a "buy" rating and issued a $3.00 target price on shares of Humacyte in a research report on Tuesday. BTIG Research cut their target price on Humacyte from $3.00 to $2.00 and set a "buy" rating on the stock in a research report on Wednesday, May 13th. Finally, Wall Street Zen raised Humacyte from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th.

Insider Activity at Humacyte

In related news, insider Shamik J. Parikh sold 45,887 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $0.90, for a total value of $41,298.30. Following the transaction, the insider directly owned 272,713 shares of the company's stock, valued at $245,441.70. This represents a 14.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Dale A. Sander sold 45,887 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $0.90, for a total value of $41,298.30. Following the completion of the transaction, the chief financial officer directly owned 267,213 shares in the company, valued at approximately $240,491.70. The trade was a 14.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Humacyte

Several hedge funds have recently added to or reduced their stakes in HUMA. Geode Capital Management LLC boosted its holdings in Humacyte by 33.4% in the second quarter. Geode Capital Management LLC now owns 2,948,508 shares of the company's stock valued at $6,163,000 after purchasing an additional 738,142 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in Humacyte by 31.3% in the second quarter. JPMorgan Chase & Co. now owns 70,067 shares of the company's stock valued at $146,000 after purchasing an additional 16,702 shares during the last quarter. Rhumbline Advisers boosted its holdings in Humacyte by 51.1% in the second quarter. Rhumbline Advisers now owns 177,623 shares of the company's stock valued at $371,000 after purchasing an additional 60,059 shares during the last quarter. Prudential Financial Inc. purchased a new stake in Humacyte in the second quarter valued at $28,000. Finally, Marshall Wace LLP boosted its holdings in Humacyte by 5,308.2% in the second quarter. Marshall Wace LLP now owns 2,639,194 shares of the company's stock valued at $5,516,000 after purchasing an additional 2,590,394 shares during the last quarter. 44.71% of the stock is owned by hedge funds and other institutional investors.

Humacyte Stock Performance

Shares of HUMA stock opened at $1.15 on Thursday. The business's fifty day simple moving average is $0.83 and its 200-day simple moving average is $1.03. The company has a market cap of $255.32 million, a PE ratio of -2.02 and a beta of 2.31. The company has a current ratio of 3.93, a quick ratio of 3.32 and a debt-to-equity ratio of 5.46. Humacyte has a 12-month low of $0.55 and a 12-month high of $2.93.

Humacyte (NASDAQ:HUMA - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.01. Humacyte had a negative return on equity of 2,914.18% and a negative net margin of 4,836.06%.The firm had revenue of $0.50 million for the quarter, compared to the consensus estimate of $1.46 million. Analysts expect that Humacyte will post -0.32 earnings per share for the current fiscal year.

About Humacyte

Humacyte, Inc is a clinical-stage biotechnology company focused on the development and manufacturing of off-the-shelf, regenerative human acellular vessels (HAVs) designed to address critical vascular access needs. The company's proprietary vessels are engineered from human donor cells and then decellularized to create a biocompatible scaffold capable of integrating with a patient's own tissue. Humacyte's primary business activities encompass process development, large-scale manufacturing, and clinical evaluation of HAVs for use in end-stage renal disease, peripheral arterial disease and other vascular repair applications.

The company's lead product candidate, the HAV, has advanced through multiple clinical trials for arteriovenous access in hemodialysis patients, demonstrating durability, reduced infection rates and compatibility with repeated cannulation.

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