It makes sense and dollars to buy Cabaletta Bio Inc. (CABA) stock

Cabaletta Bio Inc. (NASDAQ: CABA) stock jumped 7.41% on Monday to $11.01 against a previous-day closing price of $10.25. With 1.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.06 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $11.10 whereas the lowest price it dropped to was $10.00. The 52-week range on CABA shows that it touched its highest point at $11.91 and its lowest point at $0.59 during that stretch. It currently has a 1-year price target of $10.67.

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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 CABA was up-trending over the past week, with a rise of 9.88%, but this was up by 54.42% over a month. Three-month performance surged to 461.73% while six-month performance rose 680.85%. The stock gained 268.23% in the past year, while it has gained 19.03% so far this year. A look at the trailing 12-month EPS for CABA yields -1.78 with Next year EPS estimates of -1.58. For the next quarter, that number is -0.47. This implies an EPS growth rate of -24.90% for this year and 11.20% for next year.

Float and Shares Shorts:

At present, 29.01 million CABA shares are outstanding with a float of 27.61 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.56 million, which was 12.28% higher than short shares on Sep 14, 2022. In addition to Dr. Steven A. Nichtberger M.D. as the firm’s Co-Founder, Chairman, CEO & Pres, Dr. Gwendolyn K. Binder Ph.D. serves as its Pres of Science & Technology.

Institutional Ownership:

Through their ownership of 63.01% of CABA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.89% of CABA, in contrast to 49.27% held by mutual funds. Shares owned by individuals account for 12.45%. As the largest shareholder in CABA with 8.72% of the stake, Adage Capital Management LP holds 2,541,645 shares worth 2,541,645. A second-largest stockholder of CABA, Lynx1 Capital Management LP, holds 2,360,312 shares, controlling over 8.10% of the firm’s shares. Cormorant Asset Management LP is the third largest shareholder in CABA, holding 2,000,000 shares or 6.86% stake. With a 2.07% stake in CABA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 601,842 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.96% of CABA stock, is the second-largest Mutual Fund holder. It holds 280,645 shares valued at 2.6 million. Bridgeway Ultra Small Company Mar holds 0.54% of the stake in CABA, owning 157,730 shares worth 1.46 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CABA since 7 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 CABA analysts setting a high price target of $14.00 and a low target of $3.00, the average target price over the next 12 months is $10.67. Based on these targets, CABA could surge 27.16% to reach the target high and fall by -72.75% to reach the target low. Reaching the average price target will result in a decline of -3.09% 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. CABA will report FY 2022 earnings on 03/14/2024. Analysts have provided yearly estimates in a range of -$1.69 being high and -$2.03 being low. For CABA, this leads to a yearly average estimate of -$1.77. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cabaletta Bio Inc. surprised analysts by $0.06 when it reported -$0.39 EPS against a consensus estimate of -$0.45. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is -$0.41 and the low estimate is -$0.57. The average estimate for the next quarter is thus -$0.45.

Summary of Insider Activity:

Insiders traded CABA 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 8 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 396,000 while 0 shares were sold.

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