Cabaletta Bio (NASDAQ:CABA) Shares Down 8.4% - Should You Sell?

Key Points

• Cabaletta Bio shares fell 8.4% to roughly $3.00 in mid-day trading, with about 3.82 million shares changing hands.
• Analyst sentiment remains mixed but leans positive: the stock has a “Moderate Buy” consensus rating and an average price target of $15.33, despite targets ranging from $3.00 to $16.00.
• The clinical-stage biotech exceeded quarterly EPS expectations, reporting a loss of $0.34 per share versus the expected $0.37 loss. Institutional investors, including BlackRock and Renaissance Technologies, have recently built or increased positions.

Cabaletta Bio, Inc. (NASDAQ:CABA - Get Free Report)'s stock price traded down 8.4% on Wednesday . The stock traded as low as $3.02 and last traded at $2.9950. 3,818,869 shares traded hands during mid-day trading, a decline of 1% from the average session volume of 3,857,512 shares. The stock had previously closed at $3.27.

Wall Street Analysts Forecast Growth

CABA has been the subject of a number of research analyst reports. HC Wainwright restated a "buy" rating and issued a $16.00 target price on shares of Cabaletta Bio in a report on Tuesday, September 1st. Wells Fargo & Company dropped their price objective on Cabaletta Bio from $4.00 to $3.00 and set an "equal weight" rating on the stock in a research note on Friday, August 14th. TD Cowen upgraded shares of Cabaletta Bio to a "strong-buy" rating in a research report on Monday, August 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cabaletta Bio in a research report on Friday, July 17th. Finally, Wall Street Zen downgraded Cabaletta Bio from a "hold" rating to a "sell" rating in a research report on Saturday, June 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $15.33.

Cabaletta Bio Stock Performance

The firm's fifty day moving average is $2.96 and its 200-day moving average is $3.13. The company has a market capitalization of $502.36 million, a P/E ratio of -1.88 and a beta of 3.27.

Cabaletta Bio (NASDAQ:CABA - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($0.34) EPS for the quarter, topping analysts' consensus estimates of ($0.37) by $0.03. As a group, analysts expect that Cabaletta Bio, Inc. will post -1.34 EPS for the current fiscal year.

Institutional Investors Weigh In On Cabaletta Bio

Institutional investors have recently added to or reduced their stakes in the business. GSA Capital Partners LLP bought a new stake in Cabaletta Bio during the 2nd quarter worth approximately $2,079,000. Blue Owl Capital Holdings LP bought a new position in shares of Cabaletta Bio in the second quarter worth $2,223,000. Renaissance Technologies LLC boosted its stake in Cabaletta Bio by 33.8% during the first quarter. Renaissance Technologies LLC now owns 2,036,663 shares of the company's stock valued at $5,479,000 after buying an additional 514,080 shares during the period. BlackRock Inc. bought a new stake in Cabaletta Bio during the second quarter valued at $33,447,000. Finally, The Manufacturers Life Insurance Company purchased a new position in Cabaletta Bio during the second quarter worth about $566,000.

About Cabaletta Bio

Cabaletta Bio is a clinical-stage biotechnology company pioneering chimeric autoantibody receptor T cell (CAAR-T) therapies for B cell–mediated autoimmune diseases. Its proprietary platform engineers patient-derived T cells to selectively target and eliminate pathogenic B cells that produce disease-driving autoantibodies, with the aim of preserving overall immune function and reducing off-target toxicity.

The company's lead candidate, DSG3-CAART, is being evaluated in pemphigus vulgaris, a rare blistering disorder caused by autoantibodies against desmoglein 3.

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