Sutro Biopharma, Inc. (NASDAQ:STRO) shares are trading lower on Wednesday as the company faces challenges following its recent update on the STRO-004 Phase 1 study.
The STRIVE-01 study is evaluating STRO-004 in heavily pretreated patients with advanced solid tumors.
What’s Driving Sutro Biopharma (STRO) Stock Lower
Sutro Biopharma reported early clinical activity in its STRO-004 Phase 1 study, highlighting confirmed and ongoing unconfirmed partial responses with favorable tolerability and pharmacokinetics.
The company on Wednesday said dose-limiting toxicity (DLTs) occurred only at the highest dose level tested (5 mg/kg), and appeared to be largely driven by target-related toxicity, resulting in dose reduction but no study drug discontinuations.
The next STRIVE-01 study update is targeted for the first half of 2027. Initiation of expansion cohorts is planned for the first half of 2027.
The company reported $164.3 million in cash, cash equivalents, and marketable securities as of June 30, 2026, expected to support operations into at least the second quarter of 2028.
STRO Technical Analysis: Bearish Momentum Below Key Averages
The stock is currently trading at $18.82, which places it 19.2% below its 20-day simple moving average (SMA) of $23.91 and 28.3% below its 50-day SMA of $26.91.
The moving average convergence divergence (MACD) is below its signal line, indicating that upside momentum is fading, which aligns with the stock’s current bearish trend.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $48.00. Recent analyst moves include:
- Truist Securities: Buy (Price Forecast $50.00) (June 11)
- Barclays: Initiated with Overweight (Price Forecast $56.00) (May 28)
- Leerink Partners: Outperform (Raises Price Forecast to $43.00) (May 15)
STRO Price Action: Sutro Biopharma shares were down 24.46% at $18.91 at the time of publication on Wednesday, according to Benzinga Pro data.
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