Mereo Biopharma Group Stock Buy Hold or Sell Recommendation
| MREO Stock | USD 2.86 0.04 1.38% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Mereo BioPharma Group is 'Cautious Hold'. The recommendation algorithm takes into account all of Mereo BioPharma's available fundamental, technical, and predictive indicators you will find on this site.
Check out 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. In addition, we conduct extensive research on individual companies such as Mereo and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Mereo BioPharma Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
Mereo |
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
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
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 | |
| The company reported the previous year's revenue of 10 M. Net Loss for the year was (29.47 M) with profit before overhead, payroll, taxes, and interest of 936 K. | |
| Mereo BioPharma Group currently holds about 94.3 M in cash with (21.13 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81. | |
| Mereo BioPharma has a frail financial position based on the latest SEC disclosures | |
| Roughly 66.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Mereo BioPharma Group Hits New 1-Year Low - Heres What Happened - MarketBeat |
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 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 | -0.6 | Value At Risk | -7.59 | Potential Upside | 4.80 | Standard Deviation | 3.88 |
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, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Mereo BioPharma Group back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 2.3 M | Goldman Sachs Group Inc | 2024-09-30 | 2 M | Renaissance Technologies Corp | 2024-09-30 | 1.3 M | Longwood Capital Partners Llc | 2024-09-30 | 1.3 M | Marshall Wace Asset Management Ltd | 2024-09-30 | 1 M | Integral Health Asset Management, Llc | 2024-09-30 | 1000 K | Blue Owl Capital Holdings Lp | 2024-09-30 | 847.8 K | Soleus Capital Management, L.p. | 2024-09-30 | 847 K | Neos Investment Management, Llc | 2024-09-30 | 835.2 K | Rubric Capital Management Lp | 2024-09-30 | 15.3 M | Hhg Plc | 2024-09-30 | 12.3 M |
Mereo BioPharma Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Investments | 1.5M | (421K) | 1.5M | (419K) | (481.9K) | (505.9K) | |
| Change In Cash | 7.1M | 70.8M | (38.0M) | (10.8M) | (9.7M) | (9.2M) | |
| Net Borrowings | (2.2M) | 22.5M | (692K) | (937K) | (843.3K) | (801.1K) | |
| Depreciation | 1.6M | 642K | 727K | 1.1M | 1.2M | 699.6K | |
| Capital Expenditures | 16K | 535K | 10K | 419K | 377.1K | 315.7K | |
| Net Income | (166.5M) | 14.2M | (36.1M) | (29.5M) | (26.5M) | (27.8M) | |
| End Period Cash Flow | 23.5M | 94.3M | 56.3M | 57.4M | 66.0M | 47.5M | |
| Change To Netincome | 6.4M | (5.0M) | 137.1M | (16.8M) | (19.3M) | (18.3M) | |
| Free Cash Flow | (28.4M) | (5.8M) | (38.8M) | (21.6M) | (24.8M) | (26.0M) | |
| Other Non Cash Items | 5.2M | 13.4M | (9.1M) | 3.9M | 4.5M | 4.8M |
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 Biotechnology 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 Jones | -0.62 | |
β | Beta against Dow Jones | 0.74 | |
σ | Overall volatility | 4.01 | |
Ir | Information ratio | -0.16 |
Mereo BioPharma Volatility Alert
Mereo BioPharma Group exhibits very low volatility with skewness of 0.46 and kurtosis of 1.77. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mereo BioPharma's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mereo BioPharma's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.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 |
| Fundamentals | Mereo BioPharma | Peer Average |
| Return On Equity | -0.48 | -0.31 |
| Return On Asset | -0.24 | -0.14 |
| Operating Margin | (37.90) % | (5.51) % |
| Current Valuation | 369.88 M | 16.62 B |
| Shares Outstanding | 153.85 M | 571.82 M |
| Shares Owned By Insiders | 1.02 % | 10.09 % |
| Shares Owned By Institutions | 65.66 % | 39.21 % |
| Number Of Shares Shorted | 8.03 M | 4.71 M |
| Price To Earning | 6.73 X | 28.72 X |
| Price To Book | 6.12 X | 9.51 X |
| Price To Sales | 449.92 X | 11.42 X |
| Revenue | 10 M | 9.43 B |
| Gross Profit | 936 K | 27.38 B |
| EBITDA | (26.06 M) | 3.9 B |
| Net Income | (29.47 M) | 570.98 M |
| Cash And Equivalents | 94.3 M | 2.7 B |
| Cash Per Share | 0.81 X | 5.01 X |
| Total Debt | 5.95 M | 5.32 B |
| Debt To Equity | 0.19 % | 48.70 % |
| Current Ratio | 7.92 X | 2.16 X |
| Book Value Per Share | 0.51 X | 1.93 K |
| Cash Flow From Operations | (21.13 M) | 971.22 M |
| Short Ratio | 6.58 X | 4.00 X |
| Earnings Per Share | (0.25) X | 3.12 X |
| Target Price | 7.22 | |
| Number Of Employees | 33 | 18.84 K |
| Beta | 0.97 | -0.15 |
| Market Capitalization | 630.8 M | 19.03 B |
| Total Asset | 66.5 M | 29.47 B |
| Retained Earnings | (419.63 M) | 9.33 B |
| Working Capital | 54.27 M | 1.48 B |
| Current Asset | 94 K | 9.34 B |
| Current Liabilities | 729 K | 7.9 B |
Note: Disposition of 92273 shares by Scots-knight Denise of Mereo BioPharma at 3.3932 subject to Rule 16b-3 [view details]
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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Check out 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. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Biotechnology space 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 if Mereo BioPharma is a good investment 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.