Wall Street Zen Downgrades Sutro Biopharma (NASDAQ:STRO) 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 equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Friday.

Several other brokerages have also issued reports on STRO. HC Wainwright reiterated a "neutral" rating and issued a $2.00 price target on shares of Sutro Biopharma in a report on Tuesday, April 29th. Wells Fargo & Company cut their target price on Sutro Biopharma from $4.00 to $3.00 and set an "equal weight" rating on the stock in a report 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 target for the company in a research report on Monday, June 16th. Finally, Bank of America lowered their price objective on shares of Sutro Biopharma from $1.00 to $0.80 and set an "underperform" rating on the stock in a report on Monday, May 19th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Sutro Biopharma has an average rating of "Hold" and a consensus target price of $4.47.

Sutro Biopharma Price Performance

NASDAQ STRO opened at $0.8578 on Friday. The business has a 50 day simple moving average of $0.81 and a 200 day simple moving average of $0.96. Sutro Biopharma has a one year low of $0.5231 and a one year high of $5.17. The stock has a market capitalization of $72.72 million, a P/E ratio of -0.34 and a beta of 1.66.

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

Institutional Trading of Sutro Biopharma

Institutional investors have recently made changes to their positions in the company. Shay Capital LLC raised its holdings in shares of Sutro Biopharma by 26.4% in the second quarter. Shay Capital LLC now owns 259,889 shares of the company's stock valued at $186,000 after purchasing an additional 54,269 shares during the last quarter. Jane Street Group LLC bought a new stake in Sutro Biopharma in the 2nd quarter worth about $492,000. RBF Capital LLC purchased a new stake in Sutro Biopharma in the 2nd quarter valued at about $114,000. Velan Capital Investment Management LP lifted its position in shares of Sutro Biopharma by 197.1% during the 2nd quarter. Velan Capital Investment Management LP now owns 3,060,000 shares of the company's stock worth $2,185,000 after buying an additional 2,030,000 shares in the last quarter. Finally, Qube Research & Technologies Ltd bought a new position in shares of Sutro Biopharma during the 2nd quarter worth approximately $82,000. Institutional investors own 96.99% of the company's stock.

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.

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