Crescent Biopharma (NASDAQ:CBIO) Stock Falls 6.7% - Here's Why

Key Points

• Crescent Biopharma shares fell 6.7% to about $13.49, with trading volume 84% below its average. The stock is down below both its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive despite the decline: HC Wainwright upgraded the stock to “buy” with a $36 target, while the consensus rating is “Buy” with an average target of $32.40.
• The company’s latest quarterly results matched expectations at a loss of $0.74 per share, while insiders sold shares under pre-arranged plans to cover tax obligations. Institutional investors own approximately 75.19% of the stock.

Shares of Crescent Biopharma, Inc. (NASDAQ:CBIO - Get Free Report) dropped 6.7% during trading on Tuesday. The stock traded as low as $13.62 and last traded at $13.4860. 49,746 shares traded hands during trading, a decline of 84% from the average daily volume of 302,380 shares. The stock had previously closed at $14.46.

Analysts Set New Price Targets

Several research firms have weighed in on CBIO. HC Wainwright raised shares of Crescent Biopharma from a "neutral" rating to a "buy" rating and set a $36.00 price target for the company in a research note on Tuesday, October 6th. Wedbush restated an "outperform" rating and set a $27.00 price target on shares of Crescent Biopharma in a research report on Monday, September 14th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Crescent Biopharma in a research note on Friday, August 7th. Finally, TD Cowen raised Crescent Biopharma to a "strong-buy" rating in a research note on Monday, August 24th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, Crescent Biopharma currently has an average rating of "Buy" and an average target price of $32.40.

Crescent Biopharma Trading Down 8.5%

The stock has a 50 day simple moving average of $16.76 and a 200 day simple moving average of $17.83. The firm has a market capitalization of $491.59 million, a PE ratio of -1.98 and a beta of 1.27.

Crescent Biopharma (NASDAQ:CBIO - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The biopharmaceutical company reported ($0.74) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.74). As a group, equities analysts anticipate that Crescent Biopharma, Inc. will post -2.93 earnings per share for the current year.

Insiders Place Their Bets

In other Crescent Biopharma news, COO Jonathan McNeill sold 3,839 shares of the stock in a transaction on Friday, September 18th. The shares were sold at an average price of $16.71, for a total transaction of $64,149.69. Following the completion of the sale, the chief operating officer owned 134,588 shares of the company's stock, valued at $2,248,965.48. This represents a 2.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Joshua Brumm sold 7,837 shares of the firm's stock in a transaction on Friday, September 18th. The stock was sold at an average price of $16.71, for a total transaction of $130,956.27. Following the completion of the sale, the chief executive officer directly owned 271,765 shares in the company, valued at approximately $4,541,193.15. This trade represents a 2.80% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 16,726 shares of company stock valued at $285,501 over the last quarter. 24.84% of the stock is currently owned by company insiders.

Institutional Trading of Crescent Biopharma

Institutional investors have recently modified their holdings of the company. Legal & General Group Plc bought a new position in Crescent Biopharma during the 2nd quarter valued at approximately $38,000. Cannon Global Investment Management LLC purchased a new stake in Crescent Biopharma in the 1st quarter worth approximately $187,000. Persistent Asset Partners Ltd bought a new stake in shares of Crescent Biopharma in the 2nd quarter worth approximately $197,000. Wellington Management Group LLP bought a new stake in shares of Crescent Biopharma in the 2nd quarter worth approximately $263,000. Finally, The Manufacturers Life Insurance Company bought a new stake in shares of Crescent Biopharma in the 2nd quarter worth approximately $320,000. 75.19% of the stock is currently owned by hedge funds and other institutional investors.

About Crescent Biopharma

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