CARGO Therapeutics stock hits 52-week low at $3.12

CARGO Therapeutics stock has reached a new 52-week low, trading at $3.09 with a market capitalization of $607 million, as investors show concern over the company’s recent performance and market trends. According to InvestingPro data, analyst price targets range from $3 to $33, suggesting significant uncertainty about the company’s prospects. This latest price point marks a significant downturn for the biotechnology firm, which has seen its stock value decrease by over 40% in the past year. The 52-week low serves as a critical indicator for shareholders and potential investors, reflecting the challenges CARGO Therapeutics faces in a competitive industry. InvestingPro analysis shows the company maintains strong liquidity with more cash than debt and a healthy current ratio, though it’s currently burning through cash rapidly. These are just 2 of 10 key insights available on InvestingPro. Despite the current market sentiment, the company continues to strive for innovation and growth in its therapeutic developments.

In other recent news, Cargo Therapeutics has faced significant developments. The company decided to discontinue its Phase 2 clinical trial for firicabtagene autoleucel due to an insufficient benefit-risk profile. This decision resulted in a series of downgrades from analysts, including Jefferies’ Michael Yee, William Blair’s Sami Corwin, JPMorgan’s Brian Cheng, and Truist Securities’ Asthika Goonewardene, who all adjusted their ratings and price targets for the company. However, Clear Street initiated coverage with a Buy rating and a $28 target, citing potential in other drug candidates.

In response to the trial’s discontinuation, Cargo Therapeutics announced plans to reduce its workforce by about 50% to conserve cash and shift focus to advancing CRG-023, a tri-specific CAR T therapy, into a Phase 1 study. The company reported a preliminary cash reserve of $368.1 million, projected to extend its operational runway into mid-2028. Despite the setback, Cargo Therapeutics continues to develop its allogeneic platform and has secured approximately $110 million from a private investment for further development of CRG-023.

The company also announced the appointment of Dr. Kapil Dhingra to its Board of Directors and entered a sublease agreement with Vaxcyte, Inc. These developments reflect Cargo Therapeutics’ ongoing efforts to navigate its clinical programs and overall strategy following the recent trial setback.

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