Surrozen (NASDAQ:SRZN) Releases Earnings Results, Misses Estimates By $10.56 EPS

Key Points

• Surrozen reported ($11.65) EPS for the quarter, missing consensus of ($1.09) by $10.56, while revenue of $5.0M topped estimates of $4.0M; the company posted extremely negative net margin (7,476.67%) and ROE (-4,055.04%).
• Shares rallied to $34.13 after the release (12‑month high $35) and the stock carries a market cap near $392M, with Wall Street consensus a "Moderate Buy" and an average price target of $38.00.
• CEO Craig Parker and COO Charles Williams sold shares on May 4 (reducing their positions by ~21% and ~11%), though insiders still own 31.74% and insiders have net acquired 189,734 shares (~$4.68M) over the past 90 days.

Surrozen (NASDAQ:SRZN - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($11.65) EPS for the quarter, missing analysts' consensus estimates of ($1.09) by ($10.56), FiscalAI reports. Surrozen had a negative net margin of 7,476.67% and a negative return on equity of 4,055.04%. The company had revenue of $5.00 million for the quarter, compared to analyst estimates of $4.00 million.

Surrozen Stock Performance

Shares of NASDAQ:SRZN traded up $1.49 during trading on Wednesday, reaching $34.13. 136,330 shares of the stock were exchanged, compared to its average volume of 113,210. Surrozen has a 12-month low of $5.90 and a 12-month high of $35.00. The firm has a market cap of $392.15 million, a price-to-earnings ratio of -1.02 and a beta of 0.59. The firm's 50-day moving average price is $28.27 and its 200 day moving average price is $22.11.

Wall Street Analyst Weigh In

SRZN has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Surrozen from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. HC Wainwright reaffirmed a "buy" rating and set a $36.00 price objective (up from $32.00) on shares of Surrozen in a research note on Tuesday, March 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Surrozen in a research note on Tuesday, April 21st. TD Cowen initiated coverage on Surrozen in a report on Tuesday, April 21st. They set a "buy" rating for the company. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 target price on shares of Surrozen in a report on Tuesday, March 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Surrozen has a consensus rating of "Moderate Buy" and an average price target of $38.00.

Insider Transactions at Surrozen

In other news, COO Charles O. Williams sold 2,036 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $33.33, for a total transaction of $67,859.88. Following the completion of the sale, the chief operating officer owned 16,571 shares in the company, valued at approximately $552,311.43. The trade was a 10.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Craig C. Parker sold 4,524 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $33.33, for a total value of $150,784.92. Following the sale, the chief executive officer owned 16,553 shares of the company's stock, valued at $551,711.49. The trade was a 21.46% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have acquired 189,734 shares of company stock worth $4,677,729 and have sold 8,144 shares worth $271,440. 31.74% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Surrozen

Institutional investors and hedge funds have recently bought and sold shares of the stock. Persistent Asset Partners Ltd purchased a new position in Surrozen in the 4th quarter worth approximately $99,000. Marshall Wace LLP purchased a new position in Surrozen in the 4th quarter worth approximately $247,000. Ieq Capital LLC purchased a new position in Surrozen in the 4th quarter worth approximately $304,000. OMERS ADMINISTRATION Corp purchased a new position in Surrozen in the 4th quarter worth approximately $310,000. Finally, Citadel Advisors LLC boosted its holdings in Surrozen by 32.8% in the 3rd quarter. Citadel Advisors LLC now owns 13,875 shares of the company's stock worth $179,000 after acquiring an additional 3,424 shares during the period. Hedge funds and other institutional investors own 66.57% of the company's stock.

About Surrozen

Surrozen, Inc is a clinical-stage biopharmaceutical company focused on developing novel therapeutic antibodies that target the Wnt signaling pathway for applications in tissue repair, regeneration and oncology. Founded in 2012 and headquartered in South San Francisco, California, the company leverages its proprietary SurroBody platform to design bispecific antibody molecules capable of modulating Wnt receptor activity with enhanced tissue specificity.

The SurroBody platform enables the generation of high-affinity, dual-binding antibodies engineered to either activate or inhibit Wnt signaling, a pathway critical to cell proliferation, differentiation and homeostasis.

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