Gyre Therapeutics (NASDAQ:GYRE) Shares Down 11.4% on Disappointing Earnings

Key Points

• Shares fell 11.4% intraday to about $7.13 following the earnings release, with mid-day volume down ~24% versus the average session.
• Gyre missed expectations, reporting EPS of ($0.10) vs. consensus ($0.06) and revenue of $22.52M vs. an estimated $31.61M.
• Analysts have trimmed ratings (e.g., Zacks to "strong sell", Wall Street Zen to "hold"), leaving a consensus "Hold" and an average target price of $17 while the stock carries a very high P/E (~708x).

Shares of Gyre Therapeutics, Inc. (NASDAQ:GYRE - Get Free Report) fell 11.4% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $7.14 and last traded at $7.1250. 68,431 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 89,588 shares. The stock had previously closed at $8.04.

The company reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.04). The firm had revenue of $22.52 million during the quarter, compared to analyst estimates of $31.61 million. Gyre Therapeutics had a net margin of 4.31% and a return on equity of 10.85%.

Analysts Set New Price Targets

Several research firms have recently issued reports on GYRE. Zacks Research lowered Gyre Therapeutics from a "hold" rating to a "strong sell" rating in a research report on Monday, March 16th. Weiss Ratings reissued a "sell (d)" rating on shares of Gyre Therapeutics in a research report on Thursday, January 22nd. Finally, Wall Street Zen lowered Gyre Therapeutics from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Two investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $17.00.

Hedge Funds Weigh In On Gyre Therapeutics

A number of institutional investors and hedge funds have recently bought and sold shares of GYRE. Geode Capital Management LLC raised its stake in shares of Gyre Therapeutics by 13.0% during the fourth quarter. Geode Capital Management LLC now owns 423,222 shares of the company's stock valued at $2,989,000 after acquiring an additional 48,602 shares during the last quarter. State Street Corp lifted its stake in Gyre Therapeutics by 10.7% in the fourth quarter. State Street Corp now owns 202,225 shares of the company's stock valued at $1,428,000 after buying an additional 19,472 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in Gyre Therapeutics by 37.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 169,158 shares of the company's stock worth $1,194,000 after purchasing an additional 45,772 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Gyre Therapeutics by 4.7% during the 1st quarter. Bank of New York Mellon Corp now owns 43,144 shares of the company's stock worth $301,000 after purchasing an additional 1,941 shares in the last quarter. Finally, Millennium Management LLC acquired a new stake in Gyre Therapeutics in the third quarter valued at approximately $267,000. Institutional investors and hedge funds own 23.99% of the company's stock.

Gyre Therapeutics Trading Down 12.0%

The firm has a market cap of $686.20 million, a price-to-earnings ratio of 708.31 and a beta of 2.03. The firm's 50-day moving average is $7.61 and its 200-day moving average is $7.70.

About Gyre Therapeutics

Gyre Therapeutics, Inc is a clinical-stage biotechnology company focused on discovering and developing small-molecule therapies that target lipid biology to treat a range of metabolic, inflammatory and neurodegenerative diseases. The company's proprietary platform combines lipidomic profiling with drug discovery tools to identify compounds that selectively modulate membrane lipid composition and restore normal protein function in disease-relevant cells.

Gyre's preclinical pipeline includes programs in nonalcoholic steatohepatitis (NASH), Alzheimer's disease and autoimmune conditions, reflecting its strategy of applying a unified lipid-targeted approach across multiple therapeutic areas.

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