Sagimet Biosciences (NASDAQ:SGMT) Shares Up 7.5% - Here's Why

Key Points

• Sagimet Biosciences shares rose 7.5% to around $8.12 in mid-day trading, though volume was 64% below its average.
• Analyst sentiment remains broadly positive: nine analysts rate the stock Buy, with a consensus “Moderate Buy” rating and an average price target of $26.63. Price targets range from $7 at Goldman Sachs to $38 at Oppenheimer.
• The clinical-stage biopharmaceutical company is developing denifanstat, an oral FASN inhibitor being evaluated primarily for metabolic dysfunction-associated steatohepatitis (MASH); it reported a quarterly EPS loss of $0.26, slightly below expectations.

Sagimet Biosciences Inc. (NASDAQ:SGMT - Get Free Report)'s stock price shot up 7.5% during mid-day trading on Thursday. The stock traded as high as $8.11 and last traded at $8.12. Approximately 427,421 shares changed hands during trading, a decline of 64% from the average daily volume of 1,200,969 shares. The stock had previously closed at $7.55.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SGMT. Oppenheimer increased their price objective on shares of Sagimet Biosciences from $33.00 to $38.00 and gave the company an "outperform" rating in a research report on Thursday, October 1st. Citizens Jmp dropped their target price on shares of Sagimet Biosciences from $29.00 to $27.00 and set a "market outperform" rating on the stock in a research report on Thursday, October 1st. The Goldman Sachs Group assumed 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. Citigroup reaffirmed a "market outperform" rating on shares of Sagimet Biosciences in a report on Thursday, October 1st. Finally, Barclays upgraded shares of Sagimet Biosciences from an "equal weight" rating to an "overweight" rating and lifted their price objective for the stock from $8.00 to $18.00 in a research note on Wednesday, September 9th. Nine equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $26.63.

Sagimet Biosciences Stock Up 6.5%

The stock has a 50-day moving average of $10.00 and a 200 day moving average of $7.99. The stock has a market cap of $499.63 million, a PE ratio of -6.30 and a beta of 3.46.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) last posted its quarterly earnings results 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 anticipate that Sagimet Biosciences Inc. will post -1.14 EPS for the current year.

Insider Buying and Selling at Sagimet Biosciences

In other Sagimet Biosciences news, Director George Kemble sold 20,206 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $9.95, for a total transaction of $201,049.70. Following the sale, the director directly owned 62,161 shares of the company's stock, valued at approximately $618,501.95. This trade represents a 24.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Elizabeth Rozek sold 10,545 shares of Sagimet Biosciences stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $7.76, for a total value of $81,829.20. Following the transaction, the insider owned 224,414 shares of the company's stock, valued at approximately $1,741,452.64. This represents a 4.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 113,646 shares of company stock valued at $920,491. 11.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Baird Financial Group Inc. grew its position in shares of Sagimet Biosciences by 19.8% in the second 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 during the period. Seven Fleet Capital Management LP purchased a new stake in shares of Sagimet Biosciences during the second quarter worth $3,119,000. Wellington Management Group LLP acquired a new stake in shares of Sagimet Biosciences in the second quarter valued at about $315,000. AWM Investment Company Inc. acquired a new stake in shares of Sagimet Biosciences in the second quarter valued at about $618,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Sagimet Biosciences in the second quarter worth about $1,551,000. Hedge funds and other institutional investors own 87.86% of the company's stock.

About Sagimet Biosciences

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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