Wall Street Zen Downgrades Capricor Therapeutics (NASDAQ:CAPR) to Strong Sell

Key Points

• Wall Street Zen downgraded Capricor Therapeutics to “strong sell,” while other analysts have also reduced ratings. MarketBeat reports a consensus rating of “Reduce” and an average price target of $29.15.
• The FDA’s advisory committee voted 9-3 that available evidence did not support the effectiveness of Deramiocel, creating a significant setback for Capricor’s regulatory path. The vote is non-binding, but regulators and analysts questioned the therapy’s clinical data and statistical analysis.
• Capricor faces additional legal and financial risk after securities-fraud investigations and shareholder lawsuits were announced. The stock opened at $3.85, compared with a 12-month high of $40.37, and its CFO recently sold 24,100 shares.

Capricor Therapeutics (NASDAQ:CAPR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a note issued to investors on Saturday.

Other analysts have also recently issued reports about the stock. Oppenheimer restated a "market perform" rating on shares of Capricor Therapeutics in a research note on Monday. Cantor Fitzgerald lowered shares of Capricor Therapeutics from an "overweight" rating to a "neutral" rating and set a $3.50 target price on the stock. in a research note on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Capricor Therapeutics in a report on Monday, June 15th. B. Riley Financial lowered shares of Capricor Therapeutics from a "buy" rating to a "neutral" rating and set a $10.00 target price for the company. in a research report on Monday, July 27th. Finally, Piper Sandler cut shares of Capricor Therapeutics from an "overweight" rating to a "neutral" rating and set a $2.00 price target for the company. in a report on Thursday. Ten research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $29.15.

Capricor Therapeutics Stock Performance

Shares of CAPR opened at $3.85 on Friday. The firm has a market cap of $222.95 million, a PE ratio of -1.66 and a beta of 0.42. The firm's 50 day moving average price is $23.00 and its 200 day moving average price is $26.77. Capricor Therapeutics has a twelve month low of $2.96 and a twelve month high of $40.37.

Capricor Therapeutics (NASDAQ:CAPR - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The biotechnology company reported ($0.59) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.55) by ($0.04). On average, sell-side analysts anticipate that Capricor Therapeutics will post -0.84 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Capricor Therapeutics news, CFO Anthony Bergmann sold 24,100 shares of the stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $30.38, for a total value of $732,158.00. Following the completion of the sale, the chief financial officer directly owned 11,223 shares of the company's stock, valued at $340,954.74. This represents a 68.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last ninety days, insiders have sold 25,000 shares of company stock valued at $759,158. 9.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. boosted its stake in Capricor Therapeutics by 122.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 5,066 shares of the biotechnology company's stock valued at $37,000 after buying an additional 2,786 shares in the last quarter. ACT Capital Management LLC bought a new position in shares of Capricor Therapeutics during the fourth quarter valued at $43,000. KBC Group NV bought a new position in shares of Capricor Therapeutics during the first quarter valued at $44,000. Tower Research Capital LLC TRC boosted its stake in shares of Capricor Therapeutics by 280.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,748 shares of the biotechnology company's stock valued at $67,000 after purchasing an additional 4,976 shares in the last quarter. Finally, Regal Investment Advisors LLC bought a new stake in shares of Capricor Therapeutics in the 3rd quarter worth about $92,000. Institutional investors and hedge funds own 21.68% of the company's stock.

Key Headlines Impacting Capricor Therapeutics

Here are the key news stories impacting Capricor Therapeutics this week:

• Neutral Sentiment: The FDA’s Cellular, Tissue and Gene Therapies Advisory Committee voted 9-3 that available evidence did not support Deramiocel’s effectiveness. The vote is non-binding, so the FDA could still reach a different decision, but it is a significant setback for Capricor’s regulatory path. Capricor Therapeutics Provides Update on FDA Advisory Committee Meeting for Deramiocel
• Neutral Sentiment: FDA briefing materials and media reports questioned whether Deramiocel met its pre-specified cardiac endpoint and challenged Capricor’s interpretation of Phase 3 results. The dispute centers on changes to the statistical analysis plan that allegedly were not agreed to by the FDA before the company resubmitted its biologics license application. Capricor plummets after FDA panel votes against Duchenne heart disease therapy
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations or filed shareholder class actions alleging that Capricor made materially misleading statements or failed to disclose regulatory and clinical-data risks related to Deramiocel. The lawsuits add legal, financial and reputational risk, although the allegations have not been proven. Investors have been encouraged to contact the firms, with some notices citing a September 28, 2026 deadline. CAPR Investor Alert: Class Action Lawsuit Filed on Behalf of Capricor Therapeutics Investors
• Negative Sentiment: Analysts responded by cutting ratings, including downgrades from Cantor Fitzgerald, Maxim Group, Ladenburg Thalmann and Alliance Global Partners. Cantor moved to Neutral with a $3.50 price target, while JonesTrading reaffirmed a Hold rating. Capricor Therapeutics downgraded by Cantor Fitzgerald

Capricor Therapeutics Company Profile

Capricor Therapeutics, Inc is a clinical-stage biotechnology company focused on the development of cell and exosome-based therapeutics for cardiovascular and rare diseases. Headquartered in Beverly Hills, California, the company leverages proprietary cardiosphere-derived cell (CDC) technology to address conditions characterized by inflammation, fibrosis, and tissue degeneration. Since its founding, Capricor has advanced its lead candidate through multiple clinical trials and has built a pipeline that spans both cell therapy and extracellular vesicle (exosome) platforms.

The company's leading product candidate, CAP-1002, comprises allogeneic CDCs and is being evaluated in indications such as Duchenne muscular dystrophy (DMD) and COVID-19-related heart injury.

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