Sagimet Biosciences (NASDAQ:SGMT) Stock Price Down 5.1% - What's Next?

Key Points

• Sagimet Biosciences shares fell 5.1% to about $9.44, with trading volume down 94% from its average. The stock has a beta of 3.45 and a market capitalization of approximately $578 million.
• Wall Street remains broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $25.34; recent targets range from $18 to $56. However, the company missed its latest quarterly EPS estimate and analysts expect a full-year loss.
• Insiders sold 113,646 shares worth roughly $920,491 over the past three months, while institutional investors own a substantial 87.86% of the stock. Sagimet is developing denifanstat, an oral FASN inhibitor focused primarily on treating MASH.

Sagimet Biosciences Inc. (NASDAQ:SGMT - Get Free Report)'s stock price fell 5.1% on Tuesday. The stock traded as low as $9.39 and last traded at $9.4370. Approximately 71,801 shares changed hands during trading, a decline of 94% from the average session volume of 1,165,842 shares. The stock had previously closed at $9.94.

Wall Street Analysts Forecast Growth

SGMT has been the subject of several research reports. Canaccord Genuity Group increased their price target on shares of Sagimet Biosciences from $49.00 to $56.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Citizens Jmp upped their price target on shares of Sagimet Biosciences from $12.00 to $29.00 and gave the company a "market outperform" rating in a research note on Friday, August 14th. Citigroup reiterated a "market outperform" rating on shares of Sagimet Biosciences in a research report on Friday, August 14th. Barclays upgraded Sagimet Biosciences from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $8.00 to $18.00 in a research note on Wednesday, September 9th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Sagimet Biosciences in a research report on Friday, July 17th. Nine investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $25.34.

Sagimet Biosciences Stock Performance

The stock's 50-day simple moving average is $9.63 and its 200-day simple moving average is $7.66. The firm has a market capitalization of $578.09 million, a PE ratio of -7.25 and a beta of 3.45.

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

Insiders Place Their Bets

In other Sagimet Biosciences news, Director George Kemble sold 20,206 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $9.95, for a total transaction of $201,049.70. Following the transaction, the director owned 62,161 shares in the company, valued at approximately $618,501.95. This represents a 24.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Elizabeth Rozek sold 10,545 shares of the company's stock in a transaction that occurred on Monday, July 20th. The stock was 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 in the company, valued at $1,741,452.64. This trade represents a 4.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 113,646 shares of company stock worth $920,491 over the last three months. Company insiders own 11.50% of the company's stock.

Institutional Investors Weigh In On Sagimet Biosciences

Several hedge funds have recently made changes to their positions in SGMT. Baird Financial Group Inc. raised its position 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 worth $121,000 after purchasing an additional 2,591 shares during the last quarter. Seven Fleet Capital Management LP purchased a new stake in Sagimet Biosciences during the 2nd quarter valued at about $3,119,000. Wellington Management Group LLP bought a new stake in Sagimet Biosciences during the 2nd quarter valued at about $315,000. AWM Investment Company Inc. bought a new stake in Sagimet Biosciences during the 2nd quarter valued at about $618,000. Finally, Bank of New York Mellon Corp purchased a new position in Sagimet Biosciences in the second quarter worth about $1,551,000. 87.86% of the stock is currently owned by institutional investors.

About Sagimet Biosciences

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.

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