Korro Bio (NASDAQ:KRRO) Stock Price Down 0.8% - Should You Sell?

Key Points

• Price action: KRRO fell 0.8% to $14.28 on Monday on light volume (~71,740 shares, down 61% vs. average), with a market cap of about $206 million and a beta of 3.20.
• Earnings miss: The company reported ($5.32) EPS for the quarter versus ($1.93) expected, produced a -1,834% net margin, and analysts forecast -5.44 EPS for the year.
• Analyst sentiment & insider buying: MarketBeat shows a consensus "Moderate Buy" with a $37.29 target after several upgrades, while insiders purchased ~1.66 million shares recently, increasing major holders' stakes by ~19%.

Korro Bio, Inc. (NASDAQ:KRRO - Get Free Report)'s share price dropped 0.8% during mid-day trading on Monday . The company traded as low as $13.33 and last traded at $14.28. Approximately 71,740 shares changed hands during trading, a decline of 61% from the average daily volume of 183,239 shares. The stock had previously closed at $14.39.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. William Blair raised shares of Korro Bio from a "market perform" rating to an "outperform" rating in a research report on Tuesday, February 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Korro Bio in a report on Wednesday, April 8th. Clear Str upgraded shares of Korro Bio from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 18th. Chardan Capital upgraded shares of Korro Bio from a "neutral" rating to a "buy" rating and set a $15.00 target price on the stock in a report on Thursday, January 29th. Finally, Cantor Fitzgerald boosted their target price on shares of Korro Bio from $21.00 to $22.00 and gave the stock an "overweight" rating in a research report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Korro Bio currently has a consensus rating of "Moderate Buy" and a consensus target price of $37.29.

Korro Bio Price Performance

The firm's 50 day moving average price is $12.08 and its 200-day moving average price is $16.27. The firm has a market cap of $205.92 million, a price-to-earnings ratio of -1.15 and a beta of 3.20.

Korro Bio (NASDAQ:KRRO - Get Free Report) last released its earnings results on Thursday, March 12th. The company reported ($5.32) EPS for the quarter, missing the consensus estimate of ($1.93) by ($3.39). The company had revenue of $1.29 million for the quarter, compared to analyst estimates of $0.43 million. Korro Bio had a negative net margin of 1,834.48% and a negative return on equity of 115.95%. Analysts expect that Korro Bio, Inc. will post -5.44 EPS for the current year.

Insider Buying and Selling at Korro Bio

In related news, major shareholder Forest Baskett bought 207,100 shares of Korro Bio stock in a transaction that occurred on Tuesday, March 10th. The stock was acquired at an average price of $11.11 per share, for a total transaction of $2,300,881.00. Following the completion of the purchase, the insider owned 1,297,893 shares in the company, valued at approximately $14,419,591.23. This represents a 18.99% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Mohamad Makhzoumi bought 207,100 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were purchased at an average cost of $11.11 per share, for a total transaction of $2,300,881.00. Following the completion of the transaction, the insider owned 1,297,893 shares of the company's stock, valued at $14,419,591.23. This represents a 18.99% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 1,657,320 shares of company stock valued at $18,412,560 in the last three months. Company insiders own 4.60% of the company's stock.

Institutional Trading of Korro Bio

Institutional investors have recently modified their holdings of the company. Russell Investments Group Ltd. bought a new position in Korro Bio in the third quarter worth $39,000. Wells Fargo & Company MN increased its holdings in Korro Bio by 45.5% in the 4th quarter. Wells Fargo & Company MN now owns 7,522 shares of the company's stock valued at $60,000 after buying an additional 2,352 shares during the period. Guggenheim Capital LLC bought a new stake in Korro Bio in the 4th quarter valued at $84,000. Jain Global LLC acquired a new position in shares of Korro Bio in the 4th quarter valued at $85,000. Finally, Deutsche Bank AG raised its stake in shares of Korro Bio by 241.9% in the 4th quarter. Deutsche Bank AG now owns 12,758 shares of the company's stock valued at $102,000 after buying an additional 9,027 shares in the last quarter. Institutional investors and hedge funds own 13.18% of the company's stock.

About Korro Bio

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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