Sagimet Biosciences (NASDAQ:SGMT) Shares Up 6.1% - Here's What Happened

Key Points

• Sagimet Biosciences shares rose 6.1% to about $9.81, with approximately 701,409 shares traded.
• Analyst sentiment is mixed but leans positive: Barclays upgraded the stock to “overweight” with an $18 target, while Goldman Sachs initiated coverage with a “sell” rating and a $7 target. Overall, analysts assign a “Moderate Buy” consensus and an average price target of $25.34.
• The company missed its latest quarterly EPS estimate, reporting a loss of $0.26 per share versus expectations of $0.25, while insiders sold 113,646 shares worth about $920,491 during the last quarter.

Sagimet Biosciences Inc. (NASDAQ:SGMT - Get Free Report) shares shot up 6.1% on Monday. The stock traded as high as $9.81 and last traded at $9.8070. Approximately 701,409 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 1,168,464 shares. The stock had previously closed at $9.24.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SGMT. Barclays upgraded Sagimet Biosciences from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $8.00 to $18.00 in a research note on Wednesday, September 9th. The Goldman Sachs Group began coverage on Sagimet Biosciences in a report on Thursday. They set a "sell" rating and a $7.00 target price for the company. Cantor Fitzgerald began coverage on shares of Sagimet Biosciences in a research note on Wednesday, September 9th. They set an "overweight" rating and a $10.71 price objective for the company. Canaccord Genuity Group raised their target price on shares of Sagimet Biosciences from $49.00 to $56.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Sagimet Biosciences in a report on Friday, July 17th. Nine research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $25.34.

Sagimet Biosciences Stock Performance

The stock has a fifty day simple moving average of $9.58 and a two-hundred day simple moving average of $7.63. The stock has a market cap of $617.87 million, a PE ratio of -7.77 and a beta of 3.45.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.01). On average, equities analysts predict that Sagimet Biosciences Inc. will post -1.19 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Elizabeth Rozek sold 10,545 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 $81,829.20. Following the completion of the sale, the insider directly owned 224,414 shares in the company, valued at $1,741,452.64. This trade represents a 4.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 Sagimet Biosciences stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $9.95, for a total value of $201,049.70. Following the sale, the director directly owned 62,161 shares in the company, valued at approximately $618,501.95. The trade was a 24.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 113,646 shares of company stock valued at $920,491 in the last quarter. Company insiders own 11.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Baird Financial Group Inc. raised its stake in shares of Sagimet Biosciences by 19.8% in the 2nd quarter. Baird Financial Group Inc. now owns 15,677 shares of the company's stock valued at $121,000 after purchasing an additional 2,591 shares in the last quarter. Bank of America Corp DE grew its stake in Sagimet Biosciences by 344.1% in the first quarter. Bank of America Corp DE now owns 43,858 shares of the company's stock worth $229,000 after purchasing an additional 33,982 shares in the last quarter. Wellington Management Group LLP acquired a new position in Sagimet Biosciences in the second quarter worth about $315,000. Dumac Inc. bought a new stake in Sagimet Biosciences in the fourth quarter valued at about $421,000. Finally, AWM Investment Company Inc. acquired a new stake in Sagimet Biosciences during the second quarter valued at approximately $618,000. Hedge funds and other institutional investors own 87.86% of the company's stock.

Sagimet Biosciences Company Profile

Sagimet Biosciences, Inc is a clinical-stage biopharmaceutical company developing therapies for diseases associated with abnormal lipid metabolism. The company's primary focus is fatty acid synthase (FASN), an enzyme involved in the production of fatty acids that can contribute to disease progression in certain metabolic and inflammatory conditions.

Sagimet's lead product candidate is denifanstat, formerly known as TVB-2640. Denifanstat is an orally administered, selective FASN inhibitor being evaluated primarily for metabolic dysfunction-associated steatohepatitis (MASH), a chronic liver disease that can lead to fibrosis, cirrhosis and other serious complications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.