Fractyl Health (NASDAQ:GUTS) Sets New 12-Month Low - Should You Sell?

Key Points

• Fractyl Health shares fell 8.9% to an intraday 52-week low of $4.33, with the stock last trading near $4.46.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average price target of $66, while Wall Street Zen and Weiss Ratings recently issued or maintained bearish assessments; Craig Hallum rated the stock “Buy” with a $48 target.
• The clinical-stage biotechnology company reported a quarterly loss of $1.44 per share, better than the expected $1.62 loss. Several institutional investors, including Nantahala Capital Management and Bank of America, recently acquired stakes.

Fractyl Health, Inc. (NASDAQ:GUTS - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $4.33 and last traded at $4.4630, with a volume of 18808 shares traded. The stock had previously closed at $4.8792.

Wall Street Analyst Weigh In

A number of analysts recently commented on GUTS shares. Wall Street Zen downgraded shares of Fractyl Health from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Weiss Ratings lowered shares of Fractyl Health from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, September 3rd. Finally, Craig Hallum assumed coverage on Fractyl Health in a report on Wednesday, July 1st. They issued a "buy" rating and a $48.00 price target on the stock. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Fractyl Health currently has a consensus rating of "Hold" and an average price target of $66.00.

Fractyl Health Trading Down 8.9%

The company has a current ratio of 3.15, a quick ratio of 3.15 and a debt-to-equity ratio of 1.41. The stock has a market cap of $707.56 million, a price-to-earnings ratio of -5.05 and a beta of 2.42. The company has a fifty day simple moving average of $0.65 and a 200-day simple moving average of $0.68.

Fractyl Health (NASDAQ:GUTS - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($1.44) EPS for the quarter, beating the consensus estimate of ($1.62) by $0.18. On average, research analysts forecast that Fractyl Health, Inc. will post -0.53 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Nantahala Capital Management LLC acquired a new stake in Fractyl Health during the 2nd quarter worth about $8,968,058. Bank of America Corp DE acquired a new position in shares of Fractyl Health in the 2nd quarter valued at about $4,791,000. General Catalyst Group Management LLC purchased a new stake in shares of Fractyl Health in the second quarter worth approximately $3,880,000. Pale Fire Capital SE lifted its position in shares of Fractyl Health by 84.5% in the first quarter. Pale Fire Capital SE now owns 5,921,045 shares of the company's stock worth $2,711,000 after purchasing an additional 2,711,103 shares in the last quarter. Finally, Atom Investors LP acquired a new stake in shares of Fractyl Health during the fourth quarter worth approximately $4,143,000.

About Fractyl Health

Fractyl Health, Inc is a clinical-stage biotechnology company focused on developing therapies for metabolic diseases, including obesity and type 2 diabetes. The company is working to address the underlying biology of these conditions and pursue treatments that may provide more durable benefits than chronic dosing alone.

Fractyl Health's technologies include the investigational Revita duodenal mucosal resurfacing (DMR) system, an endoscopic procedure designed to alter the lining of the duodenum and potentially improve metabolic control.

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