Top investors say Sutro Biopharma Inc. (STRO) ticks everything they need

Sutro Biopharma Inc. (NASDAQ: STRO) stock jumped 6.26% on Friday to $7.64 against a previous-day closing price of $7.19. With 0.92 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.57 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $7.65 whereas the lowest price it dropped to was $7.14. The 52-week range on STRO shows that it touched its highest point at $10.98 and its lowest point at $3.33 during that stretch. It currently has a 1-year price target of $22.12. Beta for the stock currently stands at 0.92.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STRO was down-trending over the past week, with a drop of -0.39%, but this was up by 3.52% over a month. Three-month performance surged to 39.42% while six-month performance rose 19.94%. The stock lost -26.33% in the past year, while it has lost -5.45% so far this year. A look at the trailing 12-month EPS for STRO yields -2.59 with Next year EPS estimates of -2.76. For the next quarter, that number is -0.62. This implies an EPS growth rate of -132.00% for this year and -14.50% for next year.

Float and Shares Shorts:

At present, 57.48 million STRO shares are outstanding with a float of 54.23 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.14 million, which was 7.94% higher than short shares on Sep 14, 2022. In addition to Mr. William J. Newell J.D. as the firm’s CEO & Director, Mr. Edward C. Albini serves as its CFO & Sec.

Institutional Ownership:

Through their ownership of 92.35% of STRO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.88% of STRO, in contrast to 36.10% held by mutual funds. Shares owned by individuals account for 12.33%. As the largest shareholder in STRO with 8.73% of the stake, Suvretta Capital Management LLC holds 5,020,000 shares worth 5,020,000. A second-largest stockholder of STRO, Franklin Advisers, Inc., holds 3,766,450 shares, controlling over 6.55% of the firm’s shares. BVF Partners LP is the third largest shareholder in STRO, holding 3,447,946 shares or 6.00% stake. With a 4.71% stake in STRO, the Eventide Healthcare & Life Scienc is the largest stakeholder. A total of 2,708,975 shares are owned by the mutual fund manager. The FTIF SICAV – Biotechnology Discov, which owns about 3.08% of STRO stock, is the second-largest Mutual Fund holder. It holds 1,772,141 shares valued at 14.32 million. Vanguard Total Stock Market Index holds 2.97% of the stake in STRO, owning 1,708,596 shares worth 13.81 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STRO since 9 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STRO analysts setting a high price target of $33.00 and a low target of $15.00, the average target price over the next 12 months is $22.13. Based on these targets, STRO could surge 331.94% to reach the target high and rise by 96.34% to reach the target low. Reaching the average price target will result in a growth of 189.66% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STRO will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$2.09 being high and -$3.32 being low. For STRO, this leads to a yearly average estimate of -$2.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sutro Biopharma Inc. surprised analysts by -$0.08 when it reported -$0.37 EPS against a consensus estimate of -$0.29. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is -$0.33 and the low estimate is -$0.84. The average estimate for the next quarter is thus -$0.62.

Summary of Insider Activity:

Insiders traded STRO stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 170,277 while 53,567 shares were sold.

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