Mereo BioPharma Group (NASDAQ:MREO) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Mereo BioPharma Group reported a quarterly loss of ($0.02) EPS, missing the consensus estimate of ($0.01) by ($0.01) and generating $0.50 million in revenue against an expected $7.80 million.
• The company's stock increased by 8.2%, closing at $1.65, with a significant trading volume of over 4.4 million shares on the reporting day.
• Analysts maintain a Moderate Buy rating on the stock, with a price target average of $7.20, despite some downgrades from firms like Wall Street Zen.

Mereo BioPharma Group (NASDAQ:MREO - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.01), Zacks reports. The business had revenue of $0.50 million during the quarter, compared to the consensus estimate of $7.80 million.

Mereo BioPharma Group Stock Up 8.2%

MREO traded up $0.13 during trading on Tuesday, reaching $1.65. The company's stock had a trading volume of 4,468,135 shares, compared to its average volume of 1,771,844. The firm has a fifty day simple moving average of $2.27 and a two-hundred day simple moving average of $2.40. Mereo BioPharma Group has a 1 year low of $1.47 and a 1 year high of $5.02. The company has a market cap of $261.56 million, a price-to-earnings ratio of -23.50 and a beta of 0.47.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Needham & Company LLC set a $5.00 price target on Mereo BioPharma Group and gave the stock a "buy" rating in a research report on Thursday, July 10th. Wall Street Zen cut Mereo BioPharma Group from a "hold" rating to a "sell" rating in a report on Friday, July 18th. One investment analyst has rated the stock with a sell rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Mereo BioPharma Group currently has an average rating of "Moderate Buy" and an average price target of $7.20.

Institutional Trading of Mereo BioPharma Group

A number of hedge funds and other institutional investors have recently made changes to their positions in MREO. Woodline Partners LP increased its holdings in shares of Mereo BioPharma Group by 53.2% during the 1st quarter. Woodline Partners LP now owns 947,986 shares of the company's stock worth $2,133,000 after buying an additional 329,202 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Mereo BioPharma Group by 62.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,569,100 shares of the company's stock worth $3,530,000 after purchasing an additional 604,200 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of Mereo BioPharma Group by 0.3% during the first quarter. Goldman Sachs Group Inc. now owns 2,125,920 shares of the company's stock worth $4,783,000 after purchasing an additional 6,068 shares in the last quarter. Institutional investors and hedge funds own 62.83% of the company's stock.

About Mereo BioPharma Group

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors.

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