Merus (NASDAQ:MRUS) Downgraded by Citigroup to Neutral

Key Points

• Citigroup has reissued a "neutral" rating for Merus (NASDAQ:MRUS) with a revised target price of $97.00, reflecting a potential upside of 40.80% from its previous close.
• Merus reported a significant earnings miss with a Q2 EPS of ($2.23), which fell short of analyst expectations by $1.06 and revenue also did not meet estimates.
• Insider transactions included the sale of 25,000 shares by COO Peter B. Silverman, as part of a broader trend in which insiders sold 48,500 shares worth nearly $2.8 million over the last three months.

Merus (NASDAQ:MRUS - Get Free Report) was downgraded by equities research analysts at Citigroup from a "buy" rating to a "neutral" rating in a research report issued on Monday, MarketBeat.com reports. They currently have a $97.00 price target on the biotechnology company's stock, down from their previous price target of $101.00. Citigroup's price target would indicate a potential upside of 40.80% from the company's current price.

A number of other equities research analysts have also recently commented on the stock. Barclays initiated coverage on shares of Merus in a report on Wednesday, September 17th. They issued an "overweight" rating and a $112.00 price target for the company. Industrial Alliance Securities set a $90.00 price target on Merus in a report on Monday, August 25th. Alliance Global Partners began coverage on Merus in a research note on Monday, August 25th. They issued a "buy" rating and a $90.00 price objective for the company. Wall Street Zen lowered Merus from a "hold" rating to a "sell" rating in a research report on Sunday, July 20th. Finally, Needham & Company LLC dropped their price objective on shares of Merus from $97.00 to $96.00 and set a "buy" rating on the stock in a research note on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $90.54.

Merus Stock Performance

NASDAQ:MRUS opened at $68.89 on Monday. Merus has a 52 week low of $33.19 and a 52 week high of $70.65. The firm's fifty day moving average is $66.53 and its 200-day moving average is $54.52. The firm has a market cap of $5.21 billion, a P/E ratio of -12.53 and a beta of 1.19.

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

Insiders Place Their Bets

In other Merus news, COO Peter B. Silverman sold 25,000 shares of the company's stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $60.00, for a total value of $1,500,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold a total of 48,500 shares of company stock valued at $2,792,500 over the last 90 days. 3.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Merus

Hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC grew its holdings in Merus by 2,153.6% during the first quarter. GAMMA Investing LLC now owns 631 shares of the biotechnology company's stock valued at $27,000 after purchasing an additional 603 shares during the period. CWM LLC raised its stake in Merus by 299.0% in the 2nd quarter. CWM LLC now owns 802 shares of the biotechnology company's stock valued at $42,000 after acquiring an additional 601 shares during the period. GF Fund Management CO. LTD. boosted its position in Merus by 21.9% during the first quarter. GF Fund Management CO. LTD. now owns 1,753 shares of the biotechnology company's stock worth $74,000 after purchasing an additional 315 shares during the period. Caitong International Asset Management Co. Ltd raised its position in shares of Merus by 955.3% in the first quarter. Caitong International Asset Management Co. Ltd now owns 1,794 shares of the biotechnology company's stock valued at $76,000 after purchasing an additional 1,624 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. raised its position in shares of Merus by 15.7% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,674 shares of the biotechnology company's stock valued at $141,000 after purchasing an additional 362 shares during the period. Institutional investors own 96.14% of the company's stock.

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.