Merus (NASDAQ:MRUS) Downgraded by Leerink Partnrs to "Hold"

Key Points

• Merus (NASDAQ:MRUS) was downgraded by Leerink Partners from a "strong-buy" to a "hold" rating, reflecting a shift in analysts' outlook on the stock.
• Analyst consensus indicates a "hold" rating for Merus, with an average price target of $93.12, down from previous estimates.
• In its latest earnings report, Merus missed analysts' expectations, reporting a loss of $2.23 per share against a consensus estimate of ($1.17).

Merus (NASDAQ:MRUS - Get Free Report) was downgraded by equities research analysts at Leerink Partnrs from a "strong-buy" rating to a "hold" rating in a note issued to investors on Sunday,Zacks.com reports.

Several other equities analysts have also weighed in on the stock. Barclays reissued an "equal weight" rating and issued a $97.00 price objective (down from $112.00) on shares of Merus in a research report on Tuesday, September 30th. William Blair cut Merus from a "strong-buy" rating to a "hold" rating in a report on Monday, September 29th. Wells Fargo & Company reiterated an "equal weight" rating and set a $97.00 target price (up previously from $95.00) on shares of Merus in a research note on Monday, September 29th. Guggenheim restated a "neutral" rating and issued a $97.00 price target (down from $109.00) on shares of Merus in a research note on Tuesday, September 30th. Finally, Industrial Alliance Securities set a $90.00 price objective on Merus in a report on Monday, August 25th. Four research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Merus presently has a consensus rating of "Hold" and an average price target of $93.12.

Merus Stock Down 0.0%

NASDAQ:MRUS opened at $94.27 on Friday. Merus has a 12-month low of $33.19 and a 12-month high of $94.56. The firm has a market capitalization of $7.13 billion, a price-to-earnings ratio of -17.14 and a beta of 1.26. The stock's 50 day moving average price is $70.07 and its two-hundred day moving average price is $56.48.

Merus (NASDAQ:MRUS - Get Free Report) last posted its earnings results on Tuesday, August 5th. The biotechnology company reported ($2.23) earnings per share for the quarter, missing analysts' consensus estimates of ($1.17) by ($1.06). Merus had a negative return on equity of 50.28% and a negative net margin of 685.64%.The business had revenue of $8.83 million for the quarter, compared to analyst estimates of $9.77 million. Equities research analysts expect that Merus will post -3.85 EPS for the current year.

Insider Buying and Selling

In related news, COO Peter B. Silverman sold 25,000 shares of Merus stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $60.00, for a total value of $1,500,000.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Over the last 90 days, insiders have sold 48,500 shares of company stock valued at $2,792,500. 3.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Merus

A number of institutional investors have recently added to or reduced their stakes in the stock. Paradigm Biocapital Advisors LP lifted its position in shares of Merus by 99.4% during the 1st quarter. Paradigm Biocapital Advisors LP now owns 3,369,699 shares of the biotechnology company's stock worth $141,831,000 after buying an additional 1,679,777 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Merus by 34.9% in the 1st quarter. Wellington Management Group LLP now owns 4,718,172 shares of the biotechnology company's stock worth $198,588,000 after buying an additional 1,220,519 shares during the period. Ameriprise Financial Inc. grew its position in shares of Merus by 1,007.3% in the second quarter. Ameriprise Financial Inc. now owns 1,133,857 shares of the biotechnology company's stock valued at $59,641,000 after purchasing an additional 1,031,457 shares in the last quarter. Adage Capital Partners GP L.L.C. purchased a new position in Merus during the 2nd quarter valued at about $43,837,000. Finally, Westfield Capital Management Co. LP lifted its stake in Merus by 36.0% in the 2nd quarter. Westfield Capital Management Co. LP now owns 2,042,388 shares of the biotechnology company's stock worth $107,430,000 after purchasing an additional 541,168 shares in the last quarter. 96.14% of the stock is currently owned by institutional investors and hedge funds.

About Merus

Merus N.V., a clinical-stage immuno-oncology company, engages in the development of antibody therapeutics in the Netherlands. Its bispecific antibody candidate pipeline includes Zenocutuzumab (MCLA-128), which is in a phase 2 clinical trials for the treatment of patients with metastatic breast cancer and castration-resistant prostate cancer, as well as in Phase 1/2 clinical trials for the treatment of solid tumors that harbor Neuregulin 1.

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