Sutro Biopharma (NASDAQ:STRO) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen has downgraded Sutro Biopharma from a "hold" rating to a "sell" rating, signaling a negative outlook for the stock.
• Sutro Biopharma's recent quarterly earnings report showed a significant beat on revenue expectations, reporting $63.74 million versus the anticipated $14.55 million.
• Institutional investors hold a substantial 96.99% of Sutro Biopharma's shares, indicating strong institutional confidence despite the downgrades.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Friday.

Other analysts have also issued research reports about the stock. Wells Fargo & Company lowered their price objective on shares of Sutro Biopharma from $4.00 to $3.00 and set an "equal weight" rating for the company in a research note on Tuesday, August 12th. Piper Sandler raised shares of Sutro Biopharma from a "neutral" rating to an "overweight" rating and set a $2.00 price objective on the stock in a research note on Monday, June 16th. HC Wainwright reiterated a "neutral" rating and set a $2.00 price objective on shares of Sutro Biopharma in a report on Tuesday, April 29th. Finally, Bank of America decreased their target price on shares of Sutro Biopharma from $1.00 to $0.80 and set an "underperform" rating for the company in a research report on Monday, May 19th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Sutro Biopharma presently has a consensus rating of "Hold" and an average target price of $4.47.

Sutro Biopharma Price Performance

Shares of NASDAQ:STRO traded down $0.01 during mid-day trading on Friday, hitting $0.90. The company had a trading volume of 170,909 shares, compared to its average volume of 394,660. The firm has a fifty day moving average price of $0.81 and a 200 day moving average price of $0.93. The company has a market capitalization of $75.90 million, a PE ratio of -0.35 and a beta of 1.66. Sutro Biopharma has a one year low of $0.52 and a one year high of $4.80.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.14) earnings per share for the quarter, beating the consensus estimate of ($0.39) by $0.25. The company had revenue of $63.74 million during the quarter, compared to analyst estimates of $14.55 million. Sutro Biopharma had a negative net margin of 201.32% and a negative return on equity of 852.70%. Research analysts expect that Sutro Biopharma will post -2.92 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sutro Biopharma

Several institutional investors have recently added to or reduced their stakes in STRO. RA Capital Management L.P. purchased a new stake in Sutro Biopharma during the first quarter valued at about $2,885,000. Vestal Point Capital LP purchased a new stake in Sutro Biopharma during the fourth quarter valued at about $4,729,000. Velan Capital Investment Management LP lifted its holdings in Sutro Biopharma by 197.1% during the second quarter. Velan Capital Investment Management LP now owns 3,060,000 shares of the company's stock valued at $2,185,000 after purchasing an additional 2,030,000 shares during the last quarter. Acadian Asset Management LLC lifted its holdings in Sutro Biopharma by 78.9% during the first quarter. Acadian Asset Management LLC now owns 3,134,586 shares of the company's stock valued at $2,037,000 after purchasing an additional 1,382,661 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Sutro Biopharma by 1,052.8% during the first quarter. AQR Capital Management LLC now owns 1,320,917 shares of the company's stock valued at $859,000 after buying an additional 1,206,330 shares during the period. 96.99% of the stock is owned by hedge funds and other institutional investors.

Sutro Biopharma Company Profile

Sutro Biopharma, Inc operates as a clinical-stage oncology company. The company develops site-specific and novel-format antibody drug conjugates (ADCs) that enables its proprietary integrated cell-free protein synthesis platform, XpressCF and XpressCF+. Its product candidates include STRO-002, an ADC directed against folate receptor-alpha, which is in Phase II/III clinical trials for patients with ovarian and endometrial cancers; VAX-24 and Vax-31 pneumococcal conjugate vaccine candidates that is in Phase II/III clinical trials for the treatment of invasive pneumococcal disease; and MK-1484, a distinct cytokine derivative molecule that is in Phase I clinical study for the treatment of cancer.