Why Shares of Mersana Therapeutics, Inc. (MRSN) Are -5.18% Lower Today

Mersana Therapeutics, Inc. (NASDAQ:MRSN) is one of the worst performers on the stock market today. At current price of $4.76, the shares have already lost -0.26 points (-5.18% lower) from its previous close of $5.02. Should you buy or avoid them? The stock sets an active trading volume day with a reported 122212 contracts so far this session. MRSN shares had a relatively better volume day versus average trading capacity of 256.96 thousand shares, but with a 43.79 million float and a -15.06% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MRSN stock indicates that the average analyst price target is $10.25 per share. This means the stock has a potential increase of 115.34% from where the MRSN share price has been trading recently which is between $5 and $6.09. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $7.

The shorts are running away from Mersana Therapeutics, Inc. (MRSN) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in MRSN shares. While short interest still represents only 1.07% of MRSN’s float, the number of shares shorted have fallen by -81209. The number of shares shorted fell to 388381 shares, down from 469590 shares during the preceding fortnight. With average daily trading volumes at 184577 shares, days to cover decreased to about 4.829484 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Mersana Therapeutics, Inc. (MRSN) Q1 2019 Earnings Call Transcript” and dated May 16, 2019.

During the recent trading session for Mersana Therapeutics, Inc. (NASDAQ:MRSN), the company witnessed their stock drop by $-1.64 over a week and surge $0.3 from the price 20 days ago. When compared to their established 52-week high of $23.96, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/29/18. The recent low of $2.85 stood for a -80.13% since 01/23/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Mersana Therapeutics, Inc., the two-week RSI stands at 42.07. This figure suggests that MRSN stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current MRSN readings is similarly very revealing as it has a stochastic reading of 31.74% at this stage. This figure means that MRSN share price today is being neutral.

Technical chart claims that Mersana Therapeutics, Inc. (MRSN) would settle between $5.74/share to $6.46/share level. However, if the stock price goes below the $4.65 mark, then the market for Mersana Therapeutics, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $4.28 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.49. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at JP Morgan lowered their recommendation on shares of MRSN from Neutral to Underweight in their opinion released on March 11. Leerink Partners analysts bumped their rating on Mersana Therapeutics, Inc. (NASDAQ:MRSN) stock from Mkt Perform to Outperform in a separate flash note issued to investors on November 14. Analysts at Robert W. Baird, made their first call for the equity with a Outperform recommendation, according to a research note that dated back to May 08.

MRSN equity has an average rating of 1.83, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 5 analysts rated Mersana Therapeutics, Inc. (NASDAQ:MRSN) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, MRSN stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 4.93 while for the average stock in the same group, the multiple is 42.11.

Mersana Therapeutics, Inc. (MRSN)’s current-quarter revenues are projected to climb by nearly -74.15% to hit $1.08 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 305.72% from $10.59 million to a noteworthy $42.98 million. At the other end of the current quarter income statement, Mersana Therapeutics, Inc. is expected to see its adjusted earnings surge by roughly 29.63% to hit $-0.38 per share. For the fiscal year, MRSN’s earnings are projected to climb by roughly 75.99% to hit $-0.67 per share.