Please ensure Javascript is enabled for purposes of website accessibility

Why Ziopharm Oncology Stock Is Sinking Today

By Keith Speights - Mar 12, 2021 at 11:43AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares are dropping after an analyst's downgrade.

What happened

Shares of Ziopharm Oncology (ZIOP -15.15%) had sank 10.2% as of 11:26 a.m. EST on Friday. The drop came after Jefferies downgraded the stock from buy to hold and lowered its one-year price target to $5.

So what

There's both good news and bad news with this latest downgrade. Jefferies analyst Chris Howerton isn't as optimistic about Ziopharm's near-term prospects as he's been in the past. But he still sees at least some upward potential for the biotech stock. His price target reflects a 14% premium over its current share price.

$1 bill folded into an arrow pointing downward

Image source: Getty Images.

Ziopharm has been through a lot of upheaval in recent months. Activist investor WaterMill Asset Management forced changes in the company's board of directors and management. 

But the company has given investors reasons to be optimistic. Perhaps most important, the Food and Drug Administration cleared the way for Ziopharm to initiate phase 1/2 clinical studies evaluating its experimental T-cell receptor-engineered T cell (TCR-T) therapies.

Now what

The most important thing for Ziopharm shareholders to look forward to is the enrollment of patients in the clinical study of TCR-T therapies, which will begin in the second half of 2021. The company could also name a new CEO to take the place of interim CEO Heidi Hagen in the not-too-distant future.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ZIOPHARM Oncology, Inc. Stock Quote
ZIOPHARM Oncology, Inc.
ZIOP
$0.50 (-15.15%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.