Monte Rosa Therapeutics (NASDAQ:GLUE) Shares Down 4.1% After Analyst Downgrade

Key Points

• Monte Rosa Therapeutics shares fell 4.1% to about $15.84 after Wedbush cut its price target from $37 to $27, while maintaining an outperform rating.
• Analyst sentiment remains mixed but generally positive: the stock has a “Moderate Buy” consensus rating from nine analysts, with an average price target of $30.67; Zacks Research recently downgraded it to “strong sell.”
• The company reported weaker-than-expected quarterly results, including a $0.45 per-share loss versus a $0.39 consensus loss and revenue of $4.21 million versus estimates of $10.95 million. Insiders have sold 81,778 shares worth about $1.77 million over the past three months.

Shares of Monte Rosa Therapeutics, Inc. (NASDAQ:GLUE - Get Free Report) dropped 4.1% on Monday after Wedbush lowered their price target on the stock from $37.00 to $27.00. Wedbush currently has an outperform rating on the stock. Monte Rosa Therapeutics traded as low as $15.81 and last traded at $15.8410. Approximately 634,045 shares changed hands during trading, a decline of 54% from the average session volume of 1,386,235 shares. The stock had previously closed at $16.52.

A number of other equities research analysts have also issued reports on the company. Zacks Research lowered Monte Rosa Therapeutics from a "hold" rating to a "strong sell" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. lifted their price target on Monte Rosa Therapeutics from $30.00 to $31.00 and gave the stock an "overweight" rating in a research note on Monday, May 11th. Weiss Ratings upgraded Monte Rosa Therapeutics from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, July 28th. Guggenheim boosted their price target on Monte Rosa Therapeutics from $30.00 to $35.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Monte Rosa Therapeutics in a research report on Monday, July 27th. Seven analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $30.67.

Insider Activity

In other news, insider Filip Janku sold 5,407 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $24.50, for a total transaction of $132,471.50. Following the completion of the sale, the insider owned 60,612 shares of the company's stock, valued at approximately $1,484,994. This trade represents a 8.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Jennifer Champoux sold 2,175 shares of the business's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $20.00, for a total transaction of $43,500.00. Following the completion of the transaction, the chief operating officer directly owned 62,371 shares of the company's stock, valued at approximately $1,247,420. This represents a 3.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 81,778 shares of company stock valued at $1,768,581 over the last three months. 6.40% of the stock is owned by corporate insiders.

Institutional Trading of Monte Rosa Therapeutics

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Seven Fleet Capital Management LP increased its position in shares of Monte Rosa Therapeutics by 463.3% in the first quarter. Seven Fleet Capital Management LP now owns 22,530 shares of the company's stock valued at $371,000 after acquiring an additional 18,530 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Monte Rosa Therapeutics by 73.3% during the first quarter. Bank of America Corp DE now owns 387,542 shares of the company's stock valued at $6,375,000 after purchasing an additional 163,971 shares in the last quarter. Janus Henderson Group PLC bought a new stake in shares of Monte Rosa Therapeutics during the first quarter worth about $11,294,000. Empowered Funds LLC lifted its position in shares of Monte Rosa Therapeutics by 9.8% during the first quarter. Empowered Funds LLC now owns 305,398 shares of the company's stock worth $5,024,000 after acquiring an additional 27,321 shares in the last quarter. Finally, Exome Asset Management LLC purchased a new position in Monte Rosa Therapeutics in the 1st quarter worth $2,953,000. 79.96% of the stock is currently owned by institutional investors and hedge funds.

Monte Rosa Therapeutics Stock Performance

The firm has a market capitalization of $1.33 billion, a P/E ratio of -10.67 and a beta of 1.59. The firm has a 50-day moving average of $20.88 and a 200-day moving average of $19.60.

Monte Rosa Therapeutics (NASDAQ:GLUE - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.45) EPS for the quarter, missing the consensus estimate of ($0.39) by ($0.06). Monte Rosa Therapeutics had a negative net margin of 302.69% and a negative return on equity of 40.99%. The business had revenue of $4.21 million for the quarter, compared to the consensus estimate of $10.95 million. On average, research analysts forecast that Monte Rosa Therapeutics, Inc. will post -1.23 EPS for the current fiscal year.

Monte Rosa Therapeutics Company Profile

Monte Rosa Therapeutics is a biotechnology company focused on accelerating drug discovery through the integration of single-cell genomics and artificial intelligence. Founded in 2020 and headquartered in Cambridge, Massachusetts, the company has built a proprietary platform designed to identify novel therapeutic targets and optimize lead candidates for areas of high unmet medical need. By combining cutting-edge computational methods with comprehensive cellular profiling, Monte Rosa aims to streamline the preclinical development process and uncover insights into disease biology that might otherwise remain hidden.

The company's main business activities center on using its AI-driven discovery engine to pursue programs in immuno-oncology and neuroscience.

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