Wall Street Zen Downgrades Cabaletta Bio (NASDAQ:CABA) to Sell

Key Points

• Wall Street Zen downgraded Cabaletta Bio (NASDAQ:CABA) from "hold" to "sell" in a report released Saturday.
• Analyst coverage is mixed—six analysts rate the stock a Buy and one a Sell—producing a consensus "Moderate Buy" with a $17 average price target, while shares trade around $3.44 with a market cap near $383 million and a 12‑month range of $1.08–$3.78.
• Insiders have been buying: insiders purchased 127,668 shares in the past 90 days (insiders now own 11.25%), and the company reported Q1 EPS of ($0.40), beating estimates by $0.05.

Cabaletta Bio (NASDAQ:CABA - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Other research analysts have also recently issued reports about the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Cabaletta Bio in a report on Wednesday, January 21st. Morgan Stanley lowered their price objective on shares of Cabaletta Bio from $14.00 to $13.00 and set an "overweight" rating for the company in a research note on Tuesday, March 24th. Finally, Guggenheim upped their price objective on shares of Cabaletta Bio from $15.00 to $16.00 and gave the stock a "buy" rating in a research note on Tuesday, March 24th. Six research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Cabaletta Bio presently has an average rating of "Moderate Buy" and a consensus price target of $17.00.

Cabaletta Bio Trading Down 2.3%

NASDAQ CABA opened at $3.44 on Friday. The company's 50-day moving average price is $3.04 and its 200-day moving average price is $2.66. The stock has a market cap of $382.94 million, a PE ratio of -1.51 and a beta of 3.30. Cabaletta Bio has a 12 month low of $1.08 and a 12 month high of $3.78.

Cabaletta Bio (NASDAQ:CABA - Get Free Report) last posted its quarterly earnings results on Monday, March 30th. The company reported ($0.40) EPS for the quarter, topping analysts' consensus estimates of ($0.45) by $0.05. As a group, sell-side analysts forecast that Cabaletta Bio will post -2.34 earnings per share for the current year.

Insider Buying and Selling at Cabaletta Bio

In other Cabaletta Bio news, insider Steve Gavel acquired 22,170 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was bought at an average cost of $2.27 per share, with a total value of $50,325.90. Following the completion of the purchase, the insider directly owned 22,170 shares in the company, valued at $50,325.90. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark Simon acquired 11,061 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was acquired at an average cost of $2.28 per share, with a total value of $25,219.08. Following the completion of the purchase, the director owned 147,205 shares of the company's stock, valued at $335,627.40. This trade represents a 8.12% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased 127,668 shares of company stock valued at $286,211 in the last ninety days. 11.25% of the stock is owned by insiders.

Institutional Trading of Cabaletta Bio

A number of hedge funds have recently added to or reduced their stakes in CABA. CRA Financial Services LLC lifted its position in shares of Cabaletta Bio by 36.4% during the third quarter. CRA Financial Services LLC now owns 15,000 shares of the company's stock valued at $35,000 after buying an additional 4,000 shares during the last quarter. China Universal Asset Management Co. Ltd. purchased a new stake in shares of Cabaletta Bio during the fourth quarter valued at about $34,000. ANTIPODES PARTNERS Ltd purchased a new stake in shares of Cabaletta Bio during the fourth quarter valued at about $38,000. Clear Harbor Asset Management LLC purchased a new stake in shares of Cabaletta Bio during the fourth quarter valued at about $43,000. Finally, Jones Financial Companies Lllp purchased a new stake in shares of Cabaletta Bio during the third quarter valued at about $47,000.

Cabaletta Bio Company Profile

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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