The Goldman Sachs Group Upgrades Sagimet Biosciences (NASDAQ:SGMT) to Strong Sell

Key Points

• Goldman Sachs upgraded Sagimet Biosciences to a “strong sell” rating, while analyst sentiment remains mixed: MarketBeat reports a “Moderate Buy” consensus and a $25.34 average price target.
• SGMT opened at $9.11, with a one-year range of $4.50 to $11.45 and a market capitalization of approximately $566 million. The company recently reported a quarterly loss of $0.26 per share, slightly worse than estimates.
• Company insiders sold 113,646 shares worth about $920,491 over the past 90 days, although institutional investors and hedge funds own a substantial 87.86% of the stock.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) was upgraded by stock analysts at The Goldman Sachs Group to a "strong sell" rating in a report released on Thursday, Zacks reports.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of Sagimet Biosciences from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sagimet Biosciences in a research note on Friday, July 17th. Citigroup reaffirmed a "market outperform" rating on shares of Sagimet Biosciences in a report on Friday, August 14th. Canaccord Genuity Group boosted their target price on Sagimet Biosciences from $49.00 to $56.00 and gave the stock a "buy" rating in a research report on Wednesday, August 12th. Finally, Cantor Fitzgerald started coverage on Sagimet Biosciences in a report on Wednesday, September 9th. They issued an "overweight" rating and a $10.71 target price on the stock. Nine investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Sagimet Biosciences presently has a consensus rating of "Moderate Buy" and a consensus price target of $25.34.

Sagimet Biosciences Stock Performance

Sagimet Biosciences stock opened at $9.11 on Thursday. Sagimet Biosciences has a one year low of $4.50 and a one year high of $11.45. The business has a fifty day moving average of $9.55 and a two-hundred day moving average of $7.60. The company has a market cap of $566.28 million, a P/E ratio of -7.12 and a beta of 3.45.

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

Insider Buying and Selling

In other Sagimet Biosciences news, CEO David Happel sold 64,051 shares of the firm's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $7.76, for a total transaction of $497,035.76. Following the completion of the transaction, the chief executive officer owned 741,570 shares of the company's stock, valued at approximately $5,754,583.20. This trade represents a 7.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director George Kemble sold 20,206 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $9.95, for a total value of $201,049.70. Following the completion of the transaction, the director directly owned 62,161 shares of the company's stock, valued at approximately $618,501.95. This trade represents a 24.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 113,646 shares of company stock worth $920,491 in the last ninety days. Insiders own 11.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SGMT. Dimensional Fund Advisors LP boosted its position in Sagimet Biosciences by 99.4% during the first quarter. Dimensional Fund Advisors LP now owns 271,217 shares of the company's stock worth $1,415,000 after acquiring an additional 135,178 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Sagimet Biosciences in the 2nd quarter valued at $1,551,000. Renaissance Technologies LLC raised its holdings in Sagimet Biosciences by 82.6% in the 1st quarter. Renaissance Technologies LLC now owns 625,469 shares of the company's stock valued at $3,268,000 after acquiring an additional 282,969 shares during the last quarter. Seven Fleet Capital Management LP purchased a new position in shares of Sagimet Biosciences during the 2nd quarter worth $3,119,000. Finally, AWM Investment Company Inc. purchased a new position in shares of Sagimet Biosciences during the 2nd quarter worth $618,000. Institutional investors and hedge funds own 87.86% of the company's stock.

Sagimet Biosciences Company Profile

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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