Fractyl Health (NASDAQ:GUTS) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Fractyl Health from “hold” to “sell,” although the broader analyst consensus remains “Moderate Buy” with a $5.12 target price.
• GUTS shares opened at $0.68, near the lower end of their 52-week range of $0.38 to $2.44. Fractyl reported quarterly EPS of -$0.12, beating estimates of -$0.14.
• Company insiders purchased 171,493 shares worth approximately $127,150 over the past three months, while several institutional investors—including 683 Capital and Marshall Wace—also increased their holdings.

Fractyl Health (NASDAQ:GUTS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

GUTS has been the subject of a number of other research reports. Craig Hallum began coverage on shares of Fractyl Health in a research report on Wednesday, July 1st. They issued a "buy" rating and a $4.00 price objective for the company. Weiss Ratings lowered shares of Fractyl Health from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, August 6th. Finally, HC Wainwright restated a "buy" rating and issued a $8.00 price target on shares of Fractyl Health in a report on Thursday, June 4th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Fractyl Health currently has a consensus rating of "Moderate Buy" and a consensus target price of $5.12.

Fractyl Health Stock Performance

Shares of NASDAQ:GUTS opened at $0.68 on Friday. The company has a market capitalization of $108.24 million, a price-to-earnings ratio of -0.77 and a beta of 2.32. The firm's 50 day simple moving average is $0.76 and its 200 day simple moving average is $0.67. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.15 and a quick ratio of 4.28. Fractyl Health has a fifty-two week low of $0.38 and a fifty-two week high of $2.44.

Fractyl Health (NASDAQ:GUTS - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.14) by $0.02. As a group, sell-side analysts forecast that Fractyl Health will post -0.53 earnings per share for the current year.

Insider Buying and Selling at Fractyl Health

In other news, Director William Bradley bought 68,493 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were acquired at an average cost of $0.73 per share, for a total transaction of $49,999.89. Following the completion of the acquisition, the director owned 84,622 shares in the company, valued at approximately $61,774.06. This represents a 424.66% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Ian Sheffield purchased 35,000 shares of the company's stock in a transaction on Wednesday, June 10th. The shares were purchased at an average cost of $0.73 per share, for a total transaction of $25,550.00. Following the completion of the transaction, the director directly owned 35,000 shares of the company's stock, valued at approximately $25,550. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 171,493 shares of company stock valued at $127,150 over the last three months. 8.52% of the stock is owned by company insiders.

Institutional Investors Weigh In On Fractyl Health

A number of institutional investors and hedge funds have recently modified their holdings of GUTS. Nantahala Capital Management LLC acquired a new position in Fractyl Health during the third quarter worth approximately $19,298,000. 683 Capital Management LLC boosted its stake in shares of Fractyl Health by 30.1% during the 4th quarter. 683 Capital Management LLC now owns 6,047,620 shares of the company's stock worth $13,305,000 after acquiring an additional 1,397,620 shares during the period. Marshall Wace LLP increased its holdings in shares of Fractyl Health by 234.9% during the 4th quarter. Marshall Wace LLP now owns 5,926,745 shares of the company's stock worth $13,039,000 after acquiring an additional 4,156,969 shares during the last quarter. Pale Fire Capital SE increased its holdings in shares of Fractyl Health by 84.5% during the 1st quarter. Pale Fire Capital SE now owns 5,921,045 shares of the company's stock worth $2,711,000 after acquiring an additional 2,711,103 shares during the last quarter. Finally, Alyeska Investment Group L.P. bought a new stake in Fractyl Health in the 3rd quarter valued at $8,981,000.

Fractyl Health Company Profile

Fractyl Health, Inc is a clinical-stage medical technology company focused on the development and commercialization of minimally invasive, endoscopic therapies for metabolic diseases. Headquartered in Lexington, Massachusetts, Fractyl is advancing treatments that target the underlying physiology of conditions such as type 2 diabetes, obesity and nonalcoholic fatty liver disease (NAFLD) by modifying the duodenal mucosa to improve metabolic control.

The company's lead product, Revita® Duodenal Mucosal Resurfacing (Revita DMR), employs a catheter-based hydrothermal ablation technique to remodel the lining of the upper small intestine.

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