Mesoblast (NASDAQ:MESO) Stock Falls 4.5% - Here's What Happened

Key Points

• Mesoblast shares fell 4.5% to $13.795, while trading volume was about 99% below its average.
• Analyst views are mixed: two rate the stock Buy and one Sell, giving it an overall Hold rating and an average price target of $39.
• The company reported quarterly revenue of $34.45 million and a loss of $0.07 per share; analysts forecast a loss of $0.05 per share for the current fiscal year.

Mesoblast Limited (NASDAQ:MESO - Get Free Report)'s share price dropped 4.5% during trading on Wednesday. The stock traded as low as $13.91 and last traded at $13.7950. Approximately 1,976 shares were traded during mid-day trading, a decline of 99% from the average session volume of 234,049 shares. The stock had previously closed at $14.44.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Weiss Ratings upgraded Mesoblast from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, October 9th. Cantor Fitzgerald restated an "overweight" rating on shares of Mesoblast in a research report on Thursday, September 24th. Finally, Piper Sandler restated an "overweight" rating and set a $39.00 price objective (up from $35.00) on shares of Mesoblast in a research report on Thursday, August 27th. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $39.00.

Mesoblast Price Performance

The company has a quick ratio of 2.09, a current ratio of 2.43 and a debt-to-equity ratio of 0.19. The business has a 50 day simple moving average of $14.54 and a 200-day simple moving average of $15.31.

Mesoblast (NASDAQ:MESO - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported ($0.07) earnings per share for the quarter. The business had revenue of $34.45 million for the quarter. On average, sell-side analysts forecast that Mesoblast Limited will post -0.05 EPS for the current fiscal year.

Hedge Funds Weigh In On Mesoblast

Hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE grew its stake in shares of Mesoblast by 608.4% in the first quarter. Bank of America Corp DE now owns 100,004 shares of the company's stock valued at $1,538,000 after buying an additional 85,888 shares in the last quarter. GAMMA Investing LLC grew its holdings in Mesoblast by 14.1% during the 2nd quarter. GAMMA Investing LLC now owns 7,413 shares of the company's stock worth $100,000 after acquiring an additional 916 shares in the last quarter. Royal Bank of Canada increased its holdings in Mesoblast by 22.5% in the first quarter. Royal Bank of Canada now owns 26,266 shares of the company's stock valued at $404,000 after buying an additional 4,827 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Mesoblast in the 3rd quarter valued at about $39,000. Finally, China Universal Asset Management Co. Ltd. raised its holdings in Mesoblast by 15.0% during the third quarter. China Universal Asset Management Co. Ltd. now owns 9,566 shares of the company's stock worth $142,000 after purchasing an additional 1,247 shares in the last quarter. Hedge funds and other institutional investors own 1.43% of the company's stock.

About Mesoblast

Mesoblast is an Australia-based biotechnology company developing regenerative medicine products made from mesenchymal lineage cells. Its allogeneic cell therapies are designed to address inflammatory and immune-mediated conditions by modulating the body's immune response and supporting tissue repair. The company's lead commercial product, Ryoncil (remestemcel-L-rknd), is approved in the United States to treat steroid-refractory acute graft-versus-host disease in pediatric patients. A related product, marketed as Temcell in Japan, is used there to treat acute graft-versus-host disease.

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