Sagimet Biosciences (NASDAQ:SGMT) Price Target Cut to $27.00 by Analysts at Citizens Jmp

Key Points

• Citizens JMP lowered Sagimet Biosciences’ price target to $27 from $29 while maintaining a “market outperform” rating, implying substantial upside from the stock’s prior close. The analyst consensus remains “Moderate Buy,” with an average target of $25.09.
• Analyst opinions are mixed: nine analysts rate SGMT a Buy, one rates it Hold and two rate it Sell. The company recently reported a quarterly EPS loss of $0.26, slightly below the $0.25 consensus estimate.
• Denifanstat delivered encouraging 52-week Phase 3 acne-extension results, supporting plans for a roughly 800-patient U.S. AURORA trial. Sagimet also raised $115 million through a stock and warrant offering, strengthening funding for development but raising dilution concerns.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) had its price objective dropped by Citizens Jmp from $29.00 to $27.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "market outperform" rating on the stock. Citizens Jmp's price target indicates a potential upside of 173.28% from the company's previous close.

Several other equities research analysts have also weighed in on the company. The Goldman Sachs Group initiated coverage on Sagimet Biosciences in a report on Thursday, September 24th. They issued a "sell" rating and a $7.00 price objective for the company. Citigroup restated a "market outperform" rating on shares of Sagimet Biosciences in a report on Thursday. Wall Street Zen lowered shares of Sagimet Biosciences from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Cantor Fitzgerald began coverage on Sagimet Biosciences in a research note on Wednesday, September 9th. They issued an "overweight" rating and a $10.71 price target on the stock. Finally, HC Wainwright restated a "buy" rating and issued a $29.00 price target on shares of Sagimet Biosciences in a research note on Monday. Nine research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $25.09.

Sagimet Biosciences Stock Performance

NASDAQ:SGMT opened at $9.88 on Thursday. Sagimet Biosciences has a 52 week low of $4.50 and a 52 week high of $11.45. The firm has a 50-day moving average price of $9.74 and a two-hundred day moving average price of $7.72. The firm has a market cap of $614.14 million, a price-to-earnings ratio of -7.72 and a beta of 3.45.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.01). As a group, sell-side analysts forecast that Sagimet Biosciences will post -1.19 earnings per share for the current year.

Insider Buying and Selling

In related news, Director George Kemble sold 20,206 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $9.95, for a total transaction of $201,049.70. Following the completion of the sale, the director directly owned 62,161 shares in the company, valued at approximately $618,501.95. The trade was a 24.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Elizabeth Rozek sold 10,545 shares of the business's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $7.76, for a total transaction of $81,829.20. Following the sale, the insider directly owned 224,414 shares of the company's stock, valued at approximately $1,741,452.64. The trade was a 4.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 113,646 shares of company stock valued at $920,491. 11.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SGMT. Baird Financial Group Inc. boosted its position in shares of Sagimet Biosciences by 19.8% during the second quarter. Baird Financial Group Inc. now owns 15,677 shares of the company's stock worth $121,000 after acquiring an additional 2,591 shares during the last quarter. Seven Fleet Capital Management LP bought a new position in shares of Sagimet Biosciences during the 2nd quarter valued at approximately $3,119,000. Wellington Management Group LLP purchased a new stake in shares of Sagimet Biosciences in the second quarter valued at $315,000. AWM Investment Company Inc. purchased a new stake in Sagimet Biosciences in the 2nd quarter worth about $618,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Sagimet Biosciences during the 2nd quarter worth approximately $1,551,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

Key Sagimet Biosciences News

Here are the key news stories impacting Sagimet Biosciences this week:

• Positive Sentiment: Denifanstat delivered encouraging 52-week Phase 3 open-label extension results in moderate-to-severe acne. The treatment produced a 56.7% Investigator’s Global Assessment success rate, reduced total lesions by 71.8% and inflammatory lesions by 76.9%, and was generally well tolerated, with no permanent discontinuations attributed to adverse events. Sagimet Announces Positive Full 52-Week Results
• Positive Sentiment: Sagimet plans to begin screening patients for its approximately 800-patient U.S. AURORA Phase 3 acne trial in October. The data support the company’s strategy to advance denifanstat, a once-daily oral FASN inhibitor, toward the U.S. market. Sagimet Phase 3 Data and U.S. Phase 3 Plans
• Positive Sentiment: Oppenheimer raised its price target for SGMT to $38, signaling substantial potential upside if denifanstat’s U.S. development program succeeds. Oppenheimer Raises Sagimet Price Target
• Neutral Sentiment: The positive efficacy results came from a Chinese trial conducted by license partner Ascletis. Investors will likely focus on whether the findings translate to the U.S. AURORA trial and ultimately support regulatory approval.
• Negative Sentiment: Sagimet priced a $115 million underwritten offering of 8.75 million Series A shares at $10 per share, with pre-funded warrants representing another 2.75 million shares. The financing strengthens the balance sheet and funds the Phase 3 program, but the potentially substantial increase in shares outstanding is pressuring the stock through dilution concerns. Sagimet Prices $115 Million Offering

About Sagimet Biosciences

Sagimet Biosciences, Inc is a clinical-stage biopharmaceutical company developing therapies for diseases associated with abnormal lipid metabolism. The company's primary focus is fatty acid synthase (FASN), an enzyme involved in the production of fatty acids that can contribute to disease progression in certain metabolic and inflammatory conditions.

Sagimet's lead product candidate is denifanstat, formerly known as TVB-2640. Denifanstat is an orally administered, selective FASN inhibitor being evaluated primarily for metabolic dysfunction-associated steatohepatitis (MASH), a chronic liver disease that can lead to fibrosis, cirrhosis and other serious complications.

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