Humacyte (NASDAQ:HUMA) Rating Lowered to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Humacyte to “strong sell” from “sell,” although broader analyst sentiment remains “Moderate Buy” with a consensus price target of $6.11.
• Humacyte reported a quarterly loss of $0.16 per share, missing estimates by $0.05, while revenue of $0.41 million fell short of the $1.04 million consensus forecast.
• HUMA shares traded around $0.60, near their 52-week low of $0.53, despite rising 10%; institutional investors own 44.71% of the company, while insiders own 3.10%.

Humacyte (NASDAQ:HUMA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday.

Several other research firms have also recently weighed in on HUMA. Weiss Ratings reissued a "sell (e+)" rating on shares of Humacyte in a research report on Wednesday, July 8th. TD Cowen reduced their price objective on Humacyte from $1.50 to $1.25 and set a "buy" rating for the company in a research note on Wednesday, June 17th. D. Boral Capital reaffirmed a "buy" rating and set a $25.00 target price on shares of Humacyte in a research report on Tuesday, April 28th. HC Wainwright lifted their target price on Humacyte from $3.00 to $4.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. Finally, BTIG Research restated a "buy" rating and set a $2.00 price target on shares of Humacyte in a research report on Wednesday. Seven equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $6.11.

Humacyte Trading Up 10.0%

Shares of HUMA stock opened at $0.60 on Friday. The company has a debt-to-equity ratio of 2.07, a quick ratio of 3.32 and a current ratio of 6.21. The company has a market capitalization of $163.08 million, a price-to-earnings ratio of -1.23 and a beta of 2.53. Humacyte has a 52-week low of $0.53 and a 52-week high of $2.55. The company has a 50-day simple moving average of $0.78 and a two-hundred day simple moving average of $0.90.

Humacyte (NASDAQ:HUMA - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.05). The business had revenue of $0.41 million during the quarter, compared to analysts' expectations of $1.04 million. Humacyte had a negative return on equity of 983.32% and a negative net margin of 4,556.29%. Research analysts anticipate that Humacyte will post -0.34 EPS for the current fiscal year.

Insider Activity at Humacyte

In other Humacyte news, insider Shamik J. Parikh sold 45,887 shares of the company's stock in a transaction dated 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 in the company, valued at $245,441.70. This represents a 14.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kathleen Sebelius purchased 56,818 shares of the stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $0.88 per share, for a total transaction of $49,999.84. Following the acquisition, the director owned 148,025 shares in the company, valued at approximately $130,262. This represents a 62.30% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 3.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. SG Americas Securities LLC raised its stake in Humacyte by 50.3% in the fourth quarter. SG Americas Securities LLC now owns 34,075 shares of the company's stock valued at $33,000 after purchasing an additional 11,411 shares in the last quarter. Prudential Financial Inc. bought a new stake in Humacyte during the second quarter valued at approximately $28,000. Price T Rowe Associates Inc. MD grew its stake in Humacyte by 21.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 76,017 shares of the company's stock worth $73,000 after buying an additional 13,175 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in Humacyte by 41.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 45,960 shares of the company's stock worth $96,000 after buying an additional 13,407 shares in the last quarter. Finally, Financial Advisors Network Inc. purchased a new position in Humacyte in the 2nd quarter worth approximately $28,000. Hedge funds and other institutional investors own 44.71% of the company's stock.

Humacyte Company Profile

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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