Humacyte (NASDAQ:HUMA) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Humacyte from “sell” to “strong sell,” even though most other analysts still have a bullish view on the stock.
• Humacyte shares were down 0.9% to $0.69, leaving the company with a market cap of about $154 million and trading near the lower end of its 12-month range.
• The company reported a smaller-than-expected quarterly loss, but revenue was well below estimates; meanwhile, two executives sold shares in May to cover tax withholding obligations tied to equity awards.

Humacyte (NASDAQ:HUMA - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a note issued to investors on Sunday.

Other analysts have also issued research reports about the company. HC Wainwright lifted their target price on Humacyte from $3.00 to $4.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. BTIG Research reaffirmed a "buy" rating and set a $2.00 price objective on shares of Humacyte in a research report on Tuesday, June 16th. TD Cowen reduced their price objective on Humacyte from $1.50 to $1.25 and set a "buy" rating for the company in a report on Wednesday, June 17th. Benchmark boosted their target price on Humacyte to $2.00 and gave the stock a "speculative buy" rating in a research report on Monday, June 1st. Finally, D. Boral Capital reaffirmed a "buy" rating and set a $25.00 price target on shares of Humacyte in a report on Tuesday, April 28th. 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 data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $6.25.

Humacyte Stock Down 0.9%

Humacyte stock traded down $0.01 during trading hours on Friday, hitting $0.69. The stock had a trading volume of 13,040,602 shares, compared to its average volume of 16,760,806. The stock's 50-day moving average price is $0.99 and its 200-day moving average price is $0.97. The stock has a market capitalization of $154.02 million, a P/E ratio of -1.22 and a beta of 2.52. Humacyte has a 12-month low of $0.55 and a 12-month high of $2.84. The company has a quick ratio of 3.32, a current ratio of 3.93 and a debt-to-equity ratio of 5.46.

Humacyte (NASDAQ:HUMA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.01. Humacyte had a negative net margin of 4,836.06% and a negative return on equity of 2,914.18%. The company had revenue of $0.49 million during the quarter, compared to the consensus estimate of $1.46 million. Equities research analysts anticipate that Humacyte will post -0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Dale A. Sander sold 45,887 shares of the stock in a transaction that occurred 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 transaction, the chief financial officer owned 267,213 shares in the company, valued at $240,491.70. This represents a 14.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Shamik J. Parikh sold 45,887 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $0.90, for a total transaction of $41,298.30. Following the completion of the transaction, the insider directly owned 272,713 shares in the company, valued at approximately $245,441.70. The trade was a 14.40% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC lifted its stake in Humacyte by 50.3% in the 4th quarter. SG Americas Securities LLC now owns 34,075 shares of the company's stock worth $33,000 after purchasing an additional 11,411 shares in the last quarter. Prudential Financial Inc. bought a new stake in shares of Humacyte in the second quarter worth about $28,000. Price T Rowe Associates Inc. MD lifted its position in shares of Humacyte by 21.0% in the fourth 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 lifted its position in shares of Humacyte by 41.2% in the second 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. bought a new position in Humacyte during the second quarter valued at approximately $28,000. 44.71% of the stock is currently owned by institutional investors.

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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