Foghorn Therapeutics (NASDAQ:FHTX) Stock Rating Lowered by Citizens Jmp

Key Points

• Citizens JMP downgraded Foghorn Therapeutics from “strong buy” to “hold,” while several other analysts also lowered ratings or price targets. The consensus rating is now “hold,” with an average target price of $6.67.
• FHTX shares fell 30.8% to open at $2.02, near the company’s 52-week low of $1.79. The stock has a market capitalization of approximately $120 million.
• Foghorn is refocusing on its wholly owned pipeline after ending development of the FHD-909 program with Lilly, cutting about 40% of its workforce while aiming to extend its cash runway into the second half of 2029.

Foghorn Therapeutics (NASDAQ:FHTX - Get Free Report) was downgraded by Citizens Jmp from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday, Zacks reports.

FHTX has been the topic of several other research reports. TD Cowen lowered Foghorn Therapeutics from a "buy" rating to a "hold" rating in a research note on Thursday. Wedbush cut Foghorn Therapeutics from an "outperform" rating to a "neutral" rating and reduced their price objective for the stock from $10.00 to $2.00 in a report on Friday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Foghorn Therapeutics in a research report on Friday, July 17th. HC Wainwright lowered their target price on Foghorn Therapeutics from $13.00 to $5.00 and set a "buy" rating on the stock in a report on Friday. Finally, Guggenheim lowered their target price on Foghorn Therapeutics from $12.00 to $5.00 and set a "buy" rating on the stock in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Foghorn Therapeutics currently has a consensus rating of "Hold" and a consensus target price of $6.67.

Foghorn Therapeutics Stock Down 30.8%

Shares of NASDAQ FHTX opened at $2.02 on Thursday. Foghorn Therapeutics has a 52 week low of $1.79 and a 52 week high of $7.61. The firm has a 50-day moving average price of $5.11 and a 200 day moving average price of $4.82. The stock has a market capitalization of $119.95 million, a price-to-earnings ratio of -2.06 and a beta of 3.01.

Foghorn Therapeutics (NASDAQ:FHTX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.24) by $0.14. The company had revenue of $16.07 million for the quarter, compared to analyst estimates of $6.80 million. Equities research analysts expect that Foghorn Therapeutics will post -0.81 EPS for the current fiscal year.

Institutional Investors Weigh In On Foghorn Therapeutics

Several hedge funds have recently modified their holdings of the company. Squarepoint Ops LLC raised its position in shares of Foghorn Therapeutics by 25.6% in the second quarter. Squarepoint Ops LLC now owns 130,346 shares of the company's stock valued at $636,000 after buying an additional 26,603 shares during the last quarter. Bank of America Corp DE acquired a new stake in Foghorn Therapeutics during the second quarter worth approximately $127,000. Canada Pension Plan Investment Board purchased a new stake in Foghorn Therapeutics in the 2nd quarter worth approximately $122,000. BlackRock Inc. purchased a new stake in Foghorn Therapeutics in the 2nd quarter worth approximately $12,819,000. Finally, Deutsche Bank AG purchased a new stake in Foghorn Therapeutics in the 2nd quarter worth approximately $178,000. 61.55% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Foghorn Therapeutics

Here are the key news stories impacting Foghorn Therapeutics this week:

• Positive Sentiment: Foghorn plans to prioritize its wholly owned pipeline, including selective EP300 and CBP degraders, an oral immunology and inflammation program, and an induced-proximity platform. Management expects the restructuring and approximately 40% workforce reduction to extend its cash runway into the second half of 2029. Foghorn Therapeutics Provides Update on FHD-909 and Strategic Priorities
• Positive Sentiment: HC Wainwright lowered its price target to $5 from $13 but retained a “buy” rating, implying substantial potential upside from recent trading levels. HC Wainwright Price Target Update
• Neutral Sentiment: Foghorn and Lilly decided not to advance FHD-909, also known as LY4050784, into clinical expansion after reviewing Phase 1 dose-escalation data. The companies also will not advance the selective SMARCA2 degrader program, leaving Foghorn to focus on programs it owns outright. Foghorn Therapeutics Halts FHD-909 Development
• Negative Sentiment: The termination eliminates Lilly’s ongoing collaboration and removes a major externally validated development program from Foghorn’s pipeline. Foghorn will cut about 40% of its workforce as part of the strategic reset. Foghorn to Slash 40% of Jobs as Lilly Cancer Partnership Falls Apart
• Negative Sentiment: Analysts became more cautious: TD Cowen downgraded the stock following Lilly’s exit, BTIG moved FHTX from “buy” to “neutral,” and Stifel reduced its price target to $5. These revisions reflect heightened uncertainty around Foghorn’s clinical pipeline and future catalysts. Foghorn Downgraded as TD Cowen Reacts to Lilly Exit

About Foghorn Therapeutics

Foghorn Therapeutics Inc is a clinical-stage biotechnology company headquartered in Cambridge, Massachusetts. The company develops medicines designed to regulate gene expression by targeting the chromatin regulatory system, a network of proteins and complexes that controls how genetic information is organized and used within cells.

Foghorn's discovery platform, known as Gene Traffic Control, is intended to identify drug targets within chromatin-remodeling complexes and develop selective small-molecule therapies.

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