Mereo BioPharma Group (NASDAQ:MREO) Shares Gap Up - Still a Buy?

Mereo BioPharma Group plc (NASDAQ:MREO - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $3.47, but opened at $3.70. Mereo BioPharma Group shares last traded at $3.76, with a volume of 417,080 shares.

Wall Street Analyst Weigh In

MREO has been the topic of several analyst reports. Needham & Company LLC reiterated a "buy" rating and set a $7.00 price target on shares of Mereo BioPharma Group in a research note on Tuesday, November 12th. Cantor Fitzgerald reissued an "overweight" rating and issued a $7.00 price objective on shares of Mereo BioPharma Group in a research report on Tuesday, October 1st. Finally, Jefferies Financial Group began coverage on shares of Mereo BioPharma Group in a research note on Friday. They set a "buy" rating and a $7.00 target price on the stock. Five analysts have rated the stock with a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $7.40.

Mereo BioPharma Group Price Performance

The business's 50-day simple moving average is $4.04 and its two-hundred day simple moving average is $3.98.

Insider Buying and Selling

In related news, General Counsel Charles Sermon sold 9,980 shares of the company's stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $4.47, for a total transaction of $44,610.60. Following the completion of the transaction, the general counsel now owns 240,007 shares in the company, valued at $1,072,831.29. This represents a 3.99 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Christine Ann Fox sold 9,128 shares of the business's stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $4.47, for a total transaction of $40,802.16. Following the completion of the sale, the chief financial officer now owns 108,443 shares in the company, valued at approximately $484,740.21. This trade represents a 7.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 52,931 shares of company stock valued at $236,602. Corporate insiders own 4.13% of the company's stock.

Institutional Investors Weigh In On Mereo BioPharma Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Deerfield Management Company L.P. Series C bought a new stake in shares of Mereo BioPharma Group in the 2nd quarter worth approximately $24,158,000. Janus Henderson Group PLC boosted its holdings in shares of Mereo BioPharma Group by 56.7% during the third quarter. Janus Henderson Group PLC now owns 12,345,866 shares of the company's stock worth $50,865,000 after acquiring an additional 4,464,984 shares during the period. Frazier Life Sciences Management L.P. acquired a new position in Mereo BioPharma Group in the 2nd quarter valued at $15,845,000. Rubric Capital Management LP raised its holdings in Mereo BioPharma Group by 12.9% in the 2nd quarter. Rubric Capital Management LP now owns 15,307,347 shares of the company's stock valued at $55,106,000 after buying an additional 1,754,350 shares during the last quarter. Finally, Perceptive Advisors LLC acquired a new position in shares of Mereo BioPharma Group in the 2nd quarter valued at about $4,512,000. 62.83% of the stock is owned by institutional investors and hedge funds.

Mereo BioPharma Group Company Profile

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors.

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