Gyre Therapeutics (NASDAQ:GYRE) Shares Gap Down - Should You Sell?

Key Points

• Gyre Therapeutics shares fell sharply, opening at $6.27 versus a prior close of $7.09 and later trading around $5.62. The stock is down 21.1%, below both its 50-day and 200-day moving averages.
• Analyst sentiment remains weak: ratings include one Hold and one Sell, producing an average “Reduce” rating. Zacks upgraded the stock from Strong Sell to Hold, while Wall Street Zen downgraded it to Sell.
• The company missed quarterly earnings expectations, reporting a loss of $0.12 per share versus an expected loss of $0.06, despite revenue exceeding estimates. Gyre is developing F351, an investigational treatment for pulmonary and liver fibrosis.

Shares of Gyre Therapeutics, Inc. (NASDAQ:GYRE - Get Free Report) gapped down prior to trading on Friday. The stock had previously closed at $7.09, but opened at $6.27. Gyre Therapeutics shares last traded at $5.6240, with a volume of 25,692 shares changing hands.

Analyst Ratings Changes

A number of analysts recently commented on GYRE shares. Zacks Research upgraded Gyre Therapeutics from a "strong sell" rating to a "hold" rating in a report on Tuesday, October 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Gyre Therapeutics in a research note on Friday, August 7th. Finally, Wall Street Zen lowered Gyre Therapeutics from a "hold" rating to a "sell" rating in a research report on Saturday, October 17th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Reduce".

Gyre Therapeutics Stock Down 21.1%

The company has a 50-day moving average price of $6.78 and a two-hundred day moving average price of $7.00. The stock has a market capitalization of $564.24 million, a P/E ratio of -24.16 and a beta of 1.89.

Gyre Therapeutics (NASDAQ:GYRE - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The company reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.06). The company had revenue of $29.11 million during the quarter, compared to the consensus estimate of $26.49 million. Gyre Therapeutics had a negative return on equity of 6.57% and a negative net margin of 15.47%. On average, sell-side analysts expect that Gyre Therapeutics, Inc. will post -0.61 earnings per share for the current year.

Hedge Funds Weigh In On Gyre Therapeutics

Several institutional investors and hedge funds have recently added to or reduced their stakes in GYRE. Bank of America Corp DE purchased a new stake in Gyre Therapeutics in the second quarter worth about $83,000. Deutsche Bank AG bought a new stake in shares of Gyre Therapeutics in the 2nd quarter worth approximately $118,000. Dimensional Fund Advisors LP boosted its position in shares of Gyre Therapeutics by 131.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 25,268 shares of the company's stock worth $176,000 after purchasing an additional 14,365 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of Gyre Therapeutics by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 43,144 shares of the company's stock worth $301,000 after buying an additional 1,941 shares during the last quarter. Finally, SBI Securities Co. Ltd. grew its stake in shares of Gyre Therapeutics by 1.8% in the 3rd quarter. SBI Securities Co. Ltd. now owns 169,717 shares of the company's stock worth $1,244,000 after buying an additional 2,967 shares during the last quarter. Hedge funds and other institutional investors own 23.99% of the company's stock.

About Gyre Therapeutics

Gyre Therapeutics, Inc is a biopharmaceutical company focused on developing therapies for fibrotic diseases, including pulmonary and liver fibrosis. The company's lead development program is F351, also known as hydronidone, an investigational small-molecule therapy designed to inhibit the progression of fibrosis.

F351 is being evaluated in clinical programs for idiopathic pulmonary fibrosis and liver fibrosis associated with chronic liver disease, including nonalcoholic steatohepatitis-related fibrosis.

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