Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $44.42M
• Dividend Yield: N/A
• Average Volume (3M): 281.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -92.95%
• EPS Growth: -50.02%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 44,873,646
• 10 Day Avg. Volume: 343,345
• 30 Day Avg. Volume: 281,408
• PEG Ratio: 0.09
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.40
• Price Target Upside: 656.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Werewolf Therapeutics' overall stock score is low, primarily due to significant financial challenges and valuation concerns. The negative financial performance and reliance on external financing pose risks to stability and growth. While technical indicators and corporate events provide some mixed signals, the substantial financial difficulties remain the most significant factor affecting the stock's outlook.

Positive Factors

Financial Stability

The company ended the quarter with approximately $122.8 million in cash, expected to fund operations until 2Q26, indicating strong financial stability.

Partnerships and Collaborations

Werewolf Therapeutics has a partnership with Jazz Pharmaceuticals, enhancing its potential for growth and development.

Strategic Expansion

Werewolf's strategic expansion of their PREDATOR masking platform to CD3 T-cell engagers is supported by robust clinical validation and industry interest.

Negative Factors

Early Stage Development

It is unlikely that the new strategic direction with TCE platform will result in significant appreciation for HOWL in the near-term due to its nascent development stage.

Revenue and Expenses

Werewolf reported no revenues for 4Q24 as expected, and R&D expenses were higher than estimated.

Uncertainty in Trial Outcomes

There is uncertainty whether the outcomes of WTX-124’s monotherapy and combination trials will be robust enough to engage an investor base generally disinterested in novel cytokine programs.

Werewolf Therapeutics Business Overview & Revenue Model

Company Description

Werewolf Therapeutics, Inc. (HOWL) is a biotechnology company focused on the development of innovative immune-oncology therapies. Leveraging its proprietary PREDATOR platform, the company is dedicated to creating next-generation biologic treatments designed to selectively activate the immune system within the tumor microenvironment. Werewolf Therapeutics aims to provide effective and targeted cancer therapies, advancing the field of immunotherapy to improve patient outcomes.

How the Company Makes Money

Werewolf Therapeutics generates revenue primarily through strategic partnerships, collaborations, and licensing agreements centered around its proprietary PREDATOR platform and therapeutic candidates. The company collaborates with other pharmaceutical and biotechnology firms to co-develop and commercialize its innovative therapies, sharing in potential profits derived from successful treatments. Additionally, the company may receive milestone payments and royalties based on the achievement of specific clinical, regulatory, and commercial objectives. Werewolf Therapeutics also invests in research and development activities aimed at expanding its pipeline and enhancing the value of its intellectual property portfolio.

Werewolf Therapeutics Financial Statement Overview

Summary

Werewolf Therapeutics faces significant financial challenges typical of a biotechnology firm in early stages, with ongoing operating losses and negative cash flows. The reliance on financing suggests potential liquidity risks, while inconsistent revenue growth and declining equity pose challenges for future stability and expansion. Strategic focus on improving operational efficiency and revenue generation is crucial.

Income Statement

Werewolf Therapeutics has shown inconsistent revenue figures over the years with a recent drop from 2023 to 2024. Gross profit margins are highly volatile, and the company has been operating with negative net profit margins consistently, indicating ongoing losses. EBIT and EBITDA margins are negative, reflecting operating inefficiencies and high operational costs relative to revenue.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has improved over time due to a reduction in total debt. However, the equity ratio has been declining, indicating a decrease in equity relative to assets. Return on equity is negative, as losses have been persistent. The financial stability is moderate with a reasonable cash position compared to liabilities, yet the trend is concerning with shrinking equity.

Cash Flow

Operating cash flows have been negative, indicating cash burn, and free cash flows have also been consistently negative, showing challenges in generating cash from operations. Financing cash flows have been positive, suggesting reliance on external financing to support operations. The ratios of cash flows to net income highlight issues in converting revenue into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.89M	19.94M	16.40M	0.00	0.00
	Gross Profit
1.89M	-18.96M	13.89M	-735.00K	-777.00K
	EBIT
-73.59M	-40.50M	-56.06M	-50.09M	-22.40M
	EBITDA
-64.05M	-32.47M	-51.30M	-49.25M	-14.26M
	Net Income Common Stockholders
-70.52M	-37.37M	-51.56M	-49.77M	-14.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.22M	134.34M	129.31M	157.53M	92.57M
	Total Assets
126.93M	174.83M	160.25M	179.25M	96.40M
	Total Debt
10.99M	51.92M	14.68M	15.66M	2.54M
	Net Debt
-101.22M	-82.42M	-114.63M	-141.87M	-90.03M
	Total Liabilities
53.54M	63.46M	37.91M	26.46M	148.26M
	Stockholders Equity
73.39M	111.37M	122.34M	152.79M	-51.86M
Cash Flow		Free Cash Flow
-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
	Operating Cash Flow
-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
	Investing Cash Flow
-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
	Financing Cash Flow
13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOWL, the sentiment is Positive. The current price of 1.11 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.96, and below the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 74.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOWL.

Werewolf Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
NRXP	45 Neutral	$39.10M	―	108.28%	―	―	41.01%
XFOR	44 Neutral	$18.76M	1.35	121.75%	―	―	―
ATRA	41 Neutral	$39.40M	―	1063.61%	―	1404.02%	59.49%
HOWL	40 Underperform	$44.42M	―	-82.81%	―	-92.95%	-50.02%
KPTI	38 Underperform	$42.51M	―	41.08%	―	1.19%	61.65%

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Receives Nasdaq Deficiency Notice

On May 13, 2025, Werewolf Therapeutics received a deficiency letter from Nasdaq indicating that its stock price had fallen below the minimum bid requirement of $1.00 for 30 consecutive business days. This notice does not immediately affect the company’s listing, but Werewolf has 180 days to regain compliance by raising its stock price above $1.00 for at least 10 consecutive days. If unsuccessful, the company may seek an additional compliance period by transferring its listing to the Nasdaq Capital Market, though this involves meeting other criteria and paying a fee. Werewolf is actively monitoring its stock price and exploring options to address the deficiency, but there is no guarantee of success.

The most recent analyst rating on (HOWL) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Werewolf Therapeutics stock, see the HOWL Stock Forecast page.

Spark’s Take on HOWL Stock

According to Spark, TipRanks’ AI Analyst, HOWL is a Underperform.

Werewolf Therapeutics is navigating significant financial challenges, including ongoing losses and negative cash flows, heavily impacting its stock score. The bearish technical indicators and stressed valuation metrics further reflect the financial difficulties. Although there is some positive sentiment from corporate events regarding clinical progress, the overall stock score remains low, indicating substantial risks associated with the company’s current financial and market position.

To see Spark’s full report on HOWL stock, click here.

Werewolf Therapeutics Announces Q1 2025 Financial Results

On May 8, 2025, Werewolf Therapeutics announced its first quarter 2025 financial results and business updates, highlighting significant progress in its clinical programs. The company is on track with its WTX-124 Phase 1/1b trial, expecting data readouts and FDA interactions later in the year, and has initiated a Phase 1b/2 trial for WTX-330. Werewolf is also advancing its INDUCER T cell engager molecules, with a development candidate expected by mid-2025, and maintains a cash runway into the fourth quarter of 2026.

Spark’s Take on HOWL Stock

According to Spark, TipRanks’ AI Analyst, HOWL is a Neutral.

Werewolf Therapeutics is navigating significant financial challenges, including ongoing losses and negative cash flows, which heavily impact its stock score. The technical indicators show a bearish trend without significant momentum. Valuation metrics are stressed, reflecting the financial difficulties. Overall, the stock score is low, indicating substantial risks associated with the company’s current financial and market position.

To see Spark’s full report on HOWL stock, click here.

Werewolf Therapeutics Appoints Anil Singhal to Board

On February 19, 2025, Derek DiRocco, M.D., announced his resignation from the Board of Directors of Werewolf Therapeutics, effective at the company’s 2025 annual meeting of stockholders. His departure was not due to any disagreement with the company. Concurrently, Anil Singhal, Ph.D., was appointed as a new director and member of the Audit Committee. Dr. Singhal brings over three decades of experience in the biopharmaceutical industry, having previously led Trishula Therapeutics and Adicet Bio. His appointment is expected to strengthen Werewolf Therapeutics’ leadership and strategic direction, potentially impacting its market positioning and stakeholder interests.