Disc Medicine (NASDAQ:IRON) Shares Down 5% - Should You Sell?

Key Points

• Disc Medicine shares fell 5% to about $70.45, with trading volume 71% below the average daily level.
• Analyst sentiment remains broadly positive: 11 analysts rate the stock Buy, one rates it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $109.55.
• The company remains unprofitable, reporting a quarterly loss of $1.54 per share, while insiders sold about $15.9 million worth of shares over the past 90 days; institutional investors own 83.7% of the stock.

Disc Medicine, Inc. (NASDAQ:IRON - Get Free Report) traded down 5% during trading on Friday . The company traded as low as $70.27 and last traded at $70.4450. 164,058 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 563,333 shares. The stock had previously closed at $74.14.

Analysts Set New Price Targets

Several research firms recently weighed in on IRON. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Disc Medicine in a research report on Friday, July 17th. Cantor Fitzgerald reissued an "overweight" rating on shares of Disc Medicine in a report on Tuesday, September 1st. Wall Street Zen downgraded shares of Disc Medicine from a "hold" rating to a "sell" rating in a report on Saturday, August 29th. Morgan Stanley reiterated an "overweight" rating and set a $90.00 price target on shares of Disc Medicine in a research report on Monday, August 17th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Disc Medicine in a research report on Thursday. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $109.55.

Disc Medicine Stock Performance

The company has a quick ratio of 24.14, a current ratio of 24.14 and a debt-to-equity ratio of 0.09. The stock has a market cap of $2.70 billion, a price-to-earnings ratio of -10.69 and a beta of 0.97. The company has a 50 day simple moving average of $77.92 and a 200 day simple moving average of $70.85.

Disc Medicine (NASDAQ:IRON - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($1.54) earnings per share for the quarter, beating analysts' consensus estimates of ($1.71) by $0.17. As a group, equities research analysts forecast that Disc Medicine, Inc. will post -6.61 EPS for the current year.

Insider Transactions at Disc Medicine

In related news, COO Jonathan Yu sold 8,796 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $83.12, for a total transaction of $731,123.52. Following the sale, the chief operating officer owned 54,324 shares in the company, valued at $4,515,410.88. The trade was a 13.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Rahul Khara sold 5,000 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $80.00, for a total value of $400,000.00. Following the completion of the transaction, the insider directly owned 52,324 shares of the company's stock, valued at approximately $4,185,920. The trade was a 8.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 209,797 shares of company stock worth $15,934,791. Insiders own 3.76% of the company's stock.

Institutional Investors Weigh In On Disc Medicine

A number of institutional investors have recently added to or reduced their stakes in IRON. California State Teachers Retirement System boosted its stake in shares of Disc Medicine by 8,273.0% in the 2nd quarter. California State Teachers Retirement System now owns 2,878,790 shares of the company's stock valued at $210,555,000 after purchasing an additional 2,844,408 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Disc Medicine in the 2nd quarter valued at about $180,502,000. JPMorgan Chase & Co. grew its stake in Disc Medicine by 110.0% in the fourth quarter. JPMorgan Chase & Co. now owns 1,581,127 shares of the company's stock valued at $125,557,000 after acquiring an additional 828,248 shares during the period. BVF Inc. IL bought a new position in shares of Disc Medicine in the 4th quarter worth $51,616,000. Finally, Perceptive Advisors LLC acquired a new stake in Disc Medicine in the 4th quarter valued at $35,794,000. 83.70% of the stock is owned by institutional investors.

About Disc Medicine

Disc Medicine, Inc NASDAQ: IRON is a clinical-stage biotechnology company focused on discovering and developing precision medicines that restore normal cellular function in severe genetic and acquired diseases. The company employs a chemistry-driven approach to identify small molecules that selectively modulate RNA-binding proteins or splicing regulatory pathways. By leveraging proprietary screening and medicinal chemistry platforms, Disc Medicine aims to address diseases with high unmet medical needs and limited treatment options.

The company's pipeline is anchored by lead programs targeting neuromuscular and hematological disorders.

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