Mereo Stock Buy Hold or Sell Recommendation

MREO
 Stock
  

USD 0.84  0.03  3.45%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Mereo Biopharma Group is 'Strong Sell'. Macroaxis provides Mereo Biopharma buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MREO positions. The advice algorithm takes into account all of Mereo Biopharma's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Mereo Biopharma's buy-and-hold perspective. Additionally, see Mereo Biopharma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Mereo and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Mereo Biopharma Group.

Execute Mereo Biopharma Buy or Sell Advice

The Mereo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Mereo Biopharma Group. Macroaxis does not own or have any residual interests in Mereo Biopharma Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Mereo Biopharma's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Mereo BiopharmaBuy Mereo Biopharma
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Mereo Biopharma Group has a Mean Deviation of 4.66, Standard Deviation of 6.7 and Variance of 44.84
We provide investment recommendation to complement the last-minute expert consensus on Mereo Biopharma Group. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure Mereo Biopharma Group is not overpriced, please verify all Mereo Biopharma Group fundamentals, including its revenue, cash flow from operations, current liabilities, as well as the relationship between the cash per share and market capitalization . As Mereo Biopharma Group appears to be a penny stock we also strongly suggest to check its number of shares shorted numbers.

Mereo Biopharma Trading Alerts and Improvement Suggestions

Mereo Biopharma generated a negative expected return over the last 90 days
Mereo Biopharma has high historical volatility and very poor performance
Mereo Biopharma has some characteristics of a very speculative penny stock
Mereo Biopharma has high likelihood to experience some financial distress in the next 2 years
Mereo Biopharma Group currently holds about 94.3 M in cash with (5.24 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81.
Over 80.0% of the company shares are owned by institutional investors
Latest headline from www.marketscreener.com: Rubric Capital Management Issues Open Letter to Mereo BioPharma Shareholders - Marketscreener.com

Mereo Biopharma current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Mereo analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Mereo analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price699.23
Target Median Price749.18
Target High Price749.18
Recommendation Mean1.30
Number Of Analyst Opinions3
Target Low Price599.34
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Mereo Biopharma Returns Distribution Density

The distribution of Mereo Biopharma's historical returns is an attempt to chart the uncertainty of Mereo Biopharma's future price movements. The chart of the probability distribution of Mereo Biopharma stock daily returns describes the distribution of returns around its average expected value. We use Mereo Biopharma Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Mereo Biopharma returns is essential to provide solid investment advice for Mereo Biopharma.
Mean Return-0.61Value At Risk-8.97
Potential Upside13.07Standard Deviation6.70
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Mereo Biopharma historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Mereo Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Mereo Biopharma is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Mereo Biopharma Group backward and forwards among themselves. Mereo Biopharma's institutional investor refers to the entity that pools money to purchase Mereo Biopharma's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Rubric Capital Management LpCommon Shares16.8 M18.8 M
Point72 Asset Management LpCommon Shares10 M11.2 M
Orbimed Advisors LlcCommon Shares9.7 M10.9 M
Suvretta Capital Management LlcCommon Shares9.1 M10.2 M
Rock Springs Capital Management LpCommon Shares6.2 MM
Clearline Capital LpCommon Shares3.1 M3.4 M
Citadel Advisors LlcCommon Shares2.8 M3.1 M
Note, although Mereo Biopharma's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Mereo Biopharma Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Mereo Biopharma or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Mereo Biopharma's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Mereo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.53
β
Beta against DOW1.88
σ
Overall volatility
6.69
Ir
Information ratio -0.09

Mereo Biopharma Volatility Alert

Mereo Biopharma Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Mereo Biopharma Group independently to ensure intended market timing strategies are aligned with expectations about Mereo Biopharma volatility. Mereo Biopharma Group is a potential penny stock. Although Mereo Biopharma may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Mereo Biopharma Group. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Mereo instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Mereo Biopharma Fundamentals Vs Peers

Comparing Mereo Biopharma's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Mereo Biopharma's direct or indirect competition across all of the common fundamentals between Mereo Biopharma and the related equities. This way, we can detect undervalued stocks with similar characteristics as Mereo Biopharma or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Mereo Biopharma's fundamental indicators could also be used in its relative valuation, which is a method of valuing Mereo Biopharma by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Mereo Biopharma to competition
FundamentalsMereo BiopharmaPeer Average
Return On Equity34.85 %(0.31) %
Return On Asset(13.82) %(0.14) %
Profit Margin34.90 %(1.27) %
Operating Margin(57.42) %(5.51) %
Current Valuation63.71 M16.62 B
Shares Outstanding108.9 M571.82 M
Shares Owned by Insiders0.05 %10.09 %
Shares Owned by Institutions79.78 %39.21 %
Number of Shares Shorted5.21 M4.71 M
Price to Earning(1.55) X28.72 X
Price to Book1.48 X9.51 X
Price to Sales2.51 X11.42 X
Revenue36.46 M9.43 B
Gross Profit18.56 M27.38 B
EBITDA(20.86 M)3.9 B
Net Income12.72 M570.98 M
Cash and Equivalents94.3 M2.7 B
Cash per Share0.81 X5.01 X
Total Debt16.76 M5.32 B
Debt to Equity0.19 %48.70 %
Current Ratio7.92 X2.16 X
Book Value Per Share(0.22) X1.93 K
Cash Flow from Operations(5.24 M)971.22 M
Short Ratio0.76 X4.00 X
Earnings Per Share(3.33) X3.12 X
Number of Employees4918.84 K
Beta0.6-0.15
Market Capitalization91.66 M19.03 B
Total Asset499 K29.47 B
Retained Earnings(157.6 M)9.33 B
Working Capital(635 K)1.48 B
Current Asset94 K9.34 B
Current Liabilities729 K7.9 B

Mereo Biopharma Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Mereo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Mereo Biopharma Buy or Sell Advice

When is the right time to buy or sell Mereo Biopharma Group? Buying financial instruments such as Mereo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Additionally, see Mereo Biopharma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Mereo Biopharma Group information on this page should be used as a complementary analysis to other Mereo Biopharma's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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Is Mereo Biopharma's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mereo Biopharma. If investors know Mereo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mereo Biopharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mereo Biopharma Group is measured differently than its book value, which is the value of Mereo that is recorded on the company's balance sheet. Investors also form their own opinion of Mereo Biopharma's value that differs from its market value or its book value, called intrinsic value, which is Mereo Biopharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mereo Biopharma's market value can be influenced by many factors that don't directly affect Mereo Biopharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mereo Biopharma's value and its price as these two are different measures arrived at by different means. Investors typically determine Mereo Biopharma value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mereo Biopharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.