Stocks of Mersana Therapeutics Inc. (MRSN) are poised to climb above their peers

With 2.15 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.24 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $1.4800 whereas the lowest price it dropped to was $1.3700. The 52-week range on MRSN shows that it touched its highest point at $9.62 and its lowest point at $0.80 during that stretch. It currently has a 1-year price target of $2.00. Beta for the stock currently stands at 1.40.

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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 MRSN was up-trending over the past week, with a rise of 7.58%, but this was up by 19.33% over a month. Three-month performance dropped to -59.08% while six-month performance fell -69.59%. The stock lost -81.41% in the past year, while it has lost -75.77% so far this year. A look at the trailing 12-month EPS for MRSN yields -2.05 with Next year EPS estimates of -0.71. For the next quarter, that number is -0.36. This implies an EPS growth rate of 9.50% for this year and 54.80% for next year.

Float and Shares Shorts:

At present, 120.51 million MRSN shares are outstanding with a float of 118.57 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.54 million, which was 8.75% higher than short shares on Jul 30, 2023. In addition to Dr. Martin H. Huber Jr., M.D. as the firm’s MD, CEO & Director, Mr. Brian C. DeSchuytner serves as its Sr. VP, CFO & COO.

Institutional Ownership:

Through their ownership of 97.41% of MRSN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.87% of MRSN, in contrast to 28.63% held by mutual funds. Shares owned by individuals account for 13.35%. As the largest shareholder in MRSN with 16.07% of the stake, EcoR1 Capital, LLC holds 19,364,688 shares worth 19,364,688. A second-largest stockholder of MRSN, BlackRock Fund Advisors, holds 6,818,828 shares, controlling over 5.66% of the firm’s shares. Avoro Capital Advisor LLC is the third largest shareholder in MRSN, holding 6,375,000 shares or 5.29% stake. With a 4.32% stake in MRSN, the BB Biotech AG is the largest stakeholder. A total of 5,205,925 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.83% of MRSN stock, is the second-largest Mutual Fund holder. It holds 3,413,782 shares valued at 3.79 million. SPDR S&P Biotech ETF holds 2.41% of the stake in MRSN, owning 2,906,859 shares worth 3.23 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MRSN reported revenue of $4.28M and operating income of -$51.75M. The EBITDA in the recently reported quarter was -$51.23M and diluted EPS was -$0.55.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MRSN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MRSN analysts setting a high price target of $4.00 and a low target of $1.00, the average target price over the next 12 months is $2.00. Based on these targets, MRSN could surge 181.69% to reach the target high and fall by -29.58% to reach the target low. Reaching the average price target will result in a growth of 40.85% 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.

Summary of Insider Activity:

Insiders traded MRSN stock several times over the past three months with 3 Buys and 1 Sells. In these transactions, 16,546 shares were bought while 1,908 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 306,513 while 47,113 shares were sold.

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