Barclays Initiates Coverage on Merus (NASDAQ:MRUS)

Key Points

• Barclays has initiated coverage on Merus (NASDAQ:MRUS) with an "overweight" rating, joining other analysts who have recently set various price targets ranging from $90 to $110.
• Merus recently reported a quarterly loss of $2.23 per share, missing estimates, and indicated a negative return on equity of 50.28% and a significant net margin of -685.64%.
• The biotechnology company has seen substantial interest from institutional investors, with 96.14% of the stock owned by hedge funds and other institutions, highlighting increased confidence in the company's future potential.

Analysts at Barclays started coverage on shares of Merus (NASDAQ:MRUS - Get Free Report) in a note issued to investors on Tuesday, Marketbeat.com reports. The firm set an "overweight" rating and a $112.00 price target on the biotechnology company's stock. Barclays's price target suggests a potential upside of 64.17% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. Wall Street Zen cut shares of Merus from a "hold" rating to a "sell" rating in a research report on Sunday, July 20th. HC Wainwright raised shares of Merus to a "strong-buy" rating in a research report on Wednesday, August 6th. Needham & Company LLC decreased their target price on shares of Merus from $97.00 to $96.00 and set a "buy" rating on the stock in a research report on Wednesday, August 6th. BMO Capital Markets set a $110.00 target price on shares of Merus and gave the stock an "outperform" rating in a research report on Friday, May 23rd. Finally, Industrial Alliance Securities set a $90.00 target price on shares of Merus in a research report on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating and twelve have given a Buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $90.54.

Merus Stock Performance

NASDAQ MRUS traded down $0.73 during trading hours on Tuesday, reaching $68.22. The company's stock had a trading volume of 763,846 shares, compared to its average volume of 610,052. The stock has a market cap of $5.16 billion, a PE ratio of -12.40 and a beta of 1.19. Merus has a fifty-two week low of $33.19 and a fifty-two week high of $70.65. The company's 50-day moving average is $65.51 and its two-hundred day moving average is $53.73.

Merus (NASDAQ:MRUS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The biotechnology company reported ($2.23) EPS for the quarter, missing analysts' consensus estimates 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 business had revenue of $8.83 million during the quarter, compared to analyst estimates of $9.77 million. Equities analysts expect that Merus will post -3.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Merus

In other news, COO Peter B. Silverman sold 25,000 shares of the company's stock in a transaction dated 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 SEC, which is accessible through this link. In the last 90 days, insiders sold 48,500 shares of company stock valued at $2,792,500. 3.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Merus

Several large investors have recently made changes to their positions in the company. GAMMA Investing LLC boosted its position in Merus by 2,153.6% during the first quarter. GAMMA Investing LLC now owns 631 shares of the biotechnology company's stock worth $27,000 after purchasing an additional 603 shares during the period. CWM LLC boosted its position in Merus by 299.0% during the second quarter. CWM LLC now owns 802 shares of the biotechnology company's stock worth $42,000 after purchasing an additional 601 shares during the period. State of Wyoming bought a new stake in Merus during the fourth quarter worth approximately $48,000. GF Fund Management CO. LTD. bought a new stake in Merus during the fourth quarter worth approximately $60,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in Merus by 955.3% during the first quarter. Caitong International Asset Management Co. Ltd now owns 1,794 shares of the biotechnology company's stock worth $76,000 after purchasing an additional 1,624 shares during the period. Institutional investors own 96.14% of the company's stock.

Merus Company Profile

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.