Korro Bio (NASDAQ:KRRO) Releases Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Key Points

• Korro Bio beat quarterly earnings expectations: The clinical-stage biotech reported a loss of $1.07 per share, $0.22 better than analysts’ forecast, while revenue of $1.50 million exceeded expectations of $0.21 million. However, it posted a negative 1,834.48% net margin and negative 118.45% return on equity.
• Shares rose but remain highly volatile: KRRO gained $1.13 to $13.25, compared with a 52-week range of $5.20 to $55.89. Analysts maintain a “Moderate Buy” consensus with a $16.71 average price target.
• Insiders have been selling shares: Company insiders sold 306,026 shares worth approximately $4.31 million over the past 90 days, while institutional investors and hedge funds own 13.18% of the stock.

Korro Bio (NASDAQ:KRRO - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($1.07) earnings per share for the quarter, topping the consensus estimate of ($1.29) by $0.22, FiscalAI reports. The company had revenue of $1.50 million for the quarter, compared to analysts' expectations of $0.21 million. Korro Bio had a negative return on equity of 118.45% and a negative net margin of 1,834.48%.

Korro Bio Price Performance

Shares of NASDAQ:KRRO traded up $1.13 during trading hours on Friday, hitting $13.25. 120,198 shares of the company's stock traded hands, compared to its average volume of 159,064. The business has a fifty day moving average price of $12.19 and a 200-day moving average price of $12.06. Korro Bio has a 1 year low of $5.20 and a 1 year high of $55.89. The firm has a market capitalization of $191.06 million, a P/E ratio of -1.32 and a beta of 3.04.

Analyst Ratings Changes

KRRO has been the topic of a number of analyst reports. Lifesci Capital raised Korro Bio to a "strong-buy" rating in a research report on Friday, May 29th. JonesTrading upgraded Korro Bio from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 8th. HC Wainwright reduced their price objective on Korro Bio from $20.00 to $15.00 and set a "buy" rating for the company in a research note on Tuesday, May 19th. Wall Street Zen upgraded shares of Korro Bio from a "strong sell" rating to a "sell" rating in a research note on Saturday. Finally, Citigroup assumed coverage on Korro Bio in a report on Monday, May 18th. They set a "buy" rating and a $21.00 price target on the stock. Three investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.71.

Insider Activity at Korro Bio

In related news, Director Jean Francois Formela sold 9,323 shares of the business's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $13.96, for a total value of $130,149.08. Following the completion of the transaction, the director owned 146,305 shares of the company's stock, valued at $2,042,417.80. The trade was a 5.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ram Aiyar sold 15,152 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $12.98, for a total value of $196,672.96. Following the sale, the chief executive officer directly owned 74,848 shares in the company, valued at $971,527.04. This trade represents a 16.84% 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 sold a total of 306,026 shares of company stock valued at $4,309,637 over the last ninety days. Company insiders own 4.80% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Nantahala Capital Management LLC purchased a new stake in shares of Korro Bio during the fourth quarter valued at $4,806,000. TCG Crossover Management LLC purchased a new stake in shares of Korro Bio in the third quarter worth about $19,937,000. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Korro Bio during the 3rd quarter worth approximately $4,319,000. Raymond James Financial Inc. grew its position in Korro Bio by 78.6% during the third quarter. Raymond James Financial Inc. now owns 148,971 shares of the company's stock valued at $7,134,000 after buying an additional 65,579 shares during the period. Finally, F m Investments LLC acquired a new stake in shares of Korro Bio during the 3rd quarter valued at about $2,646,000. 13.18% of the stock is owned by institutional investors and hedge funds.

Korro Bio Company Profile

Korro Bio, Inc is a clinical-stage biotechnology company focused on harnessing advanced protein engineering and synthetic biology to develop novel enzyme therapies and live microbial therapeutics. The company's proprietary platform integrates directed evolution, high-throughput screening and computational design to optimize biological catalysts for a wide range of applications. By combining machine learning with experimental biology, Korro Bio seeks to accelerate the discovery and development of next-generation treatments for rare genetic disorders and complex metabolic diseases.

The company's pipeline features both engineered enzyme therapeutics and live biotherapeutics.

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