Mereo BioPharma Group plc - Sponsored ADR (NASDAQ:MREO) Short Interest Update

Key Points

• Short interest fell 39.9% to 3.54 million shares as of July 15, representing about 2.4% of Mereo BioPharma’s shares and 3.2 days of average trading volume.
• Analyst sentiment is mixed but averages a “Hold” rating: three analysts rate the stock Buy, four Hold and one Sell, with an average price target of $3.25.
• MREO shares rose 3.8% to $0.32, while institutional investors and hedge funds own 62.83% of the company; the firm reported a quarterly EPS loss of $0.01, missing the $0.02 consensus estimate.

Mereo BioPharma Group plc - Sponsored ADR (NASDAQ:MREO - Get Free Report) was the target of a significant decline in short interest in the month of July. As of July 15th, there was short interest totaling 3,535,905 shares, a decline of 39.9% from the June 30th total of 5,883,564 shares. Approximately 2.4% of the shares of the company are short sold. Based on an average daily trading volume, of 1,096,197 shares, the short-interest ratio is currently 3.2 days.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on MREO shares. BTIG Research reiterated a "buy" rating and issued a $1.00 price target on shares of Mereo BioPharma Group in a research report on Tuesday, May 12th. Zacks Research upgraded shares of Mereo BioPharma Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, June 10th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Mereo BioPharma Group in a research report on Thursday, July 2nd. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $3.25.

Hedge Funds Weigh In On Mereo BioPharma Group

Institutional investors have recently modified their holdings of the stock. Marex Group plc acquired a new stake in shares of Mereo BioPharma Group in the 2nd quarter valued at approximately $27,000. Virtu Financial LLC bought a new stake in Mereo BioPharma Group in the third quarter valued at approximately $33,000. Forefront Analytics LLC raised its holdings in Mereo BioPharma Group by 302.2% in the first quarter. Forefront Analytics LLC now owns 127,778 shares of the company's stock worth $42,000 after purchasing an additional 96,010 shares during the period. Graham Capital Management L.P. bought a new position in shares of Mereo BioPharma Group during the fourth quarter worth $48,000. Finally, Virtus Investment Advisers LLC boosted its position in shares of Mereo BioPharma Group by 199.5% during the fourth quarter. Virtus Investment Advisers LLC now owns 122,595 shares of the company's stock worth $51,000 after purchasing an additional 81,665 shares in the last quarter. 62.83% of the stock is currently owned by institutional investors and hedge funds.

Mereo BioPharma Group Trading Up 3.8%

Shares of MREO traded up $0.01 during trading hours on Thursday, hitting $0.32. 294,426 shares of the stock traded hands, compared to its average volume of 5,404,174. Mereo BioPharma Group has a 1-year low of $0.20 and a 1-year high of $2.37. The firm has a market capitalization of $50.76 million, a PE ratio of -6.36 and a beta of 0.35. The business has a fifty day moving average of $0.31 and a 200-day moving average of $0.36.

Mereo BioPharma Group (NASDAQ:MREO - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.03). As a group, equities research analysts expect that Mereo BioPharma Group will post -0.02 earnings per share for the current fiscal year.

Mereo BioPharma Group Company Profile

Mereo BioPharma Group plc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for rare diseases, oncology and severe respiratory conditions. The company pursues an asset‐centric model, in which it in-licenses or acquires clinical-stage small molecules and monoclonal antibodies with established safety profiles. By concentrating resources on a select number of programs, Mereo aims to accelerate proof-of-concept studies and maximize the potential value of each therapeutic candidate.

Mereo's pipeline includes investigational therapies for skeletal disorders, such as setrusumab (BPS-804) for osteogenesis imperfecta, and treatments for acute and chronic respiratory diseases.

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