Why Did In8bio Stock Plunge 18.55% Despite Promising Trial Data?

On June 4, 2025, In8bio's stock experienced a significant drop of 18.55% in pre-market trading, reflecting a notable decline in investor sentiment.

Analysts have expressed mixed sentiments regarding In8bio's stock. Soumit Roy from JonesTrading maintained a Buy rating with a price target of $1.20, while Wainwright adjusted its price target from $8.00 to $6.00, citing the impact of a recent capital raise. Additionally, Mizuho Securities has kept its Buy rating on the stock.

In8bio recently reported promising long-term data from its Phase 1 trial of INB-200, a treatment for newly diagnosed glioblastoma multiforme (GBM). The trial demonstrated a median progression-free survival (mPFS) of 16.1 months, significantly outperforming the standard-of-care Stupp protocol's expected 6.9 months. The treatment was well-tolerated with no serious safety issues reported, suggesting that INB-200 could represent a novel immunotherapy approach for GBM.

Despite the positive clinical data, institutional investors have shown varying levels of confidence in In8bio. Several hedge funds, including AIGH Capital Management LLC and Alyeska Investment Group, L.P., have reduced their positions in the company, while others like Vanguard Group Inc. have increased their holdings. This mixed institutional activity may contribute to the volatility in In8bio's stock price.