---
title: "Why is Sutro Biopharma Stock Falling On Wednesday?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295697857.md"
description: "Sutro Biopharma (STRO) shares dropped significantly on Wednesday following a Phase 1 update for STRO-004, which reported dose-limiting toxicities at the highest dose level. The next study update is expected in early 2027. Despite the decline, analysts maintain a Buy consensus with an average price target of $48.00, citing strong cash reserves supporting operations through 2028."
datetime: "2026-08-12T18:04:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295697857.md)
  - [en](https://longbridge.com/en/news/295697857.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295697857.md)
generator: "portal-rs"
---

# Why is Sutro Biopharma Stock Falling On Wednesday?

**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 STR*IV*E-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 STR*IV*E-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.

 **Read Also: PDS Biotechnology Stock Crashes, Strategic Refocus Pivots to Metastatic Colorectal Cancer Program** 

## 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.

 **Read Also: CAVA Shakes Off Food-Safety Scare As Analyst Says Business Is ‘Firing On All Cylinders’** 

*Photo: Shutterstock*

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**