Sagimet Biosciences (NASDAQ:SGMT) Shares Down 6.3% - What's Next?

Key Points

• Sagimet Biosciences shares fell 6.3% to $8.25, with trading volume below its average. The stock has a $499.9 million market capitalization and high volatility, reflected by a beta of 3.46.
• Analyst sentiment remains mixed but leans positive: nine analysts rate the stock a Buy, versus one Hold and two Sells. The consensus rating is “Moderate Buy” with a target price of $26.63, though targets range from $7 to $26.
• The company recently missed quarterly EPS estimates, reporting a loss of $0.26 per share versus expectations of $0.25. Insiders have sold 113,646 shares worth about $920,491 over the past three months, while institutional investors own 87.86% of the stock.

Sagimet Biosciences Inc. (NASDAQ:SGMT - Get Free Report) fell 6.3% on Tuesday. The stock traded as low as $8.17 and last traded at $8.25. 679,902 shares changed hands during trading, a decline of 43% from the average session volume of 1,192,153 shares. The stock had previously closed at $8.80.

Analyst Ratings Changes

Several research firms have recently commented on SGMT. Barclays raised Sagimet Biosciences from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $8.00 to $18.00 in a research note on Wednesday, September 9th. The Goldman Sachs Group began coverage on shares of Sagimet Biosciences in a research note on Thursday, September 24th. They set a "sell" rating and a $7.00 price target on the stock. Guggenheim increased their price target on shares of Sagimet Biosciences from $25.00 to $26.00 and gave the company a "buy" rating in a report on Friday, October 2nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sagimet Biosciences in a research note on Friday, July 17th. Finally, Cantor Fitzgerald reiterated an "overweight" rating on shares of Sagimet Biosciences in a research report on Thursday, October 1st. Nine equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $26.63.

Sagimet Biosciences Stock Down 8.6%

The firm has a 50 day simple moving average of $10.02 and a 200-day simple moving average of $7.94. The company has a market cap of $499.89 million, a PE ratio of -6.33 and a beta of 3.46.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.01). As a group, equities analysts anticipate that Sagimet Biosciences Inc. will post -1.14 EPS for the current year.

Insider Buying and Selling

In other news, CEO David Happel sold 64,051 shares of the firm's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $7.76, for a total transaction of $497,035.76. Following the sale, the chief executive officer directly owned 741,570 shares in the company, valued at $5,754,583.20. This trade represents a 7.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director George Kemble sold 20,206 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $9.95, for a total value of $201,049.70. Following the completion of the transaction, the director owned 62,161 shares in the company, valued at approximately $618,501.95. This trade represents a 24.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 113,646 shares of company stock valued at $920,491. Corporate insiders own 11.50% of the company's stock.

Hedge Funds Weigh In On Sagimet Biosciences

Large investors have recently modified their holdings of the business. Seven Fleet Capital Management LP acquired a new stake in shares of Sagimet Biosciences in the second quarter valued at $3,119,000. Renaissance Technologies LLC lifted its holdings in Sagimet Biosciences by 82.6% during the 1st quarter. Renaissance Technologies LLC now owns 625,469 shares of the company's stock worth $3,268,000 after buying an additional 282,969 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Sagimet Biosciences in the 2nd quarter valued at approximately $1,551,000. Dimensional Fund Advisors LP increased its position in shares of Sagimet Biosciences by 99.4% during the first quarter. Dimensional Fund Advisors LP now owns 271,217 shares of the company's stock worth $1,415,000 after acquiring an additional 135,178 shares during the period. Finally, AWM Investment Company Inc. purchased a new position in Sagimet Biosciences in the second quarter valued at $618,000. Institutional investors and hedge funds own 87.86% of the company's stock.

Sagimet Biosciences Company Profile

Sagimet Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing medicines that target fatty acid synthase (FASN), an enzyme involved in the production of fatty acids. The company's research is aimed at treating diseases associated with abnormal lipid metabolism and excess fat production.

Sagimet's lead investigational product is denifanstat, an oral, selective FASN inhibitor formerly known as TVB-2640. The company is evaluating denifanstat primarily for metabolic dysfunction-associated steatohepatitis (MASH), a chronic liver disease that can involve inflammation, fat accumulation and fibrosis.

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