Sagimet Biosciences (NASDAQ:SGMT) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sagimet Biosciences to “Sell” from “Hold,” despite broader analyst support: seven analysts rate the stock a Buy, two a Hold and one a Sell. The overall consensus remains “Moderate Buy,” with a target price of $29.17.
• SGMT shares opened at $10.55, near their 52-week high of $10.60, and have risen above their 50-day and 200-day moving averages. However, the company reported a quarterly loss of $0.26 per share, slightly missing expectations, and analysts forecast a full-year loss of $1.15 per share.
• Insiders sold shares recently: Director George Kemble sold approximately $201,000 worth of stock, while CEO David Happel sold about $497,000 worth; insiders sold $920,491 in shares over the past 90 days.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other analysts have also issued reports on SGMT. Citigroup restated a "market outperform" rating on shares of Sagimet Biosciences in a research note on Friday. Guggenheim dropped their target price on shares of Sagimet Biosciences from $27.00 to $25.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sagimet Biosciences in a research report on Friday, July 17th. Canaccord Genuity Group increased their target price on Sagimet Biosciences from $49.00 to $56.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Oppenheimer restated an "outperform" rating on shares of Sagimet Biosciences in a research note on Friday, May 1st. Seven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $29.17.

Sagimet Biosciences Stock Performance

Shares of SGMT opened at $10.55 on Friday. Sagimet Biosciences has a one year low of $4.50 and a one year high of $10.60. The stock has a 50-day moving average price of $7.51 and a 200 day moving average price of $6.57. The company has a market capitalization of $343.72 million, a P/E ratio of -8.24 and a beta of 3.37.

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 the consensus estimate of ($0.25) by ($0.01). As a group, equities research analysts forecast that Sagimet Biosciences will post -1.15 earnings per share for the current fiscal year.

Insider Activity at Sagimet Biosciences

In other Sagimet Biosciences news, 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 sale, the director owned 62,161 shares in the company, valued at approximately $618,501.95. This trade represents a 24.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Happel sold 64,051 shares of the firm's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $7.76, for a total transaction of $497,035.76. Following the completion of the sale, the chief executive officer owned 741,570 shares in the company, valued at $5,754,583.20. The trade was a 7.95% 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 have sold a total of 113,646 shares of company stock worth $920,491 in the last ninety days. 11.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Sagimet Biosciences

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada raised its stake in Sagimet Biosciences by 819.2% during the 4th quarter. Royal Bank of Canada now owns 4,927 shares of the company's stock valued at $29,000 after acquiring an additional 4,391 shares in the last quarter. China Universal Asset Management Co. Ltd. bought a new position in shares of Sagimet Biosciences in the fourth quarter worth $30,000. Bank of America Corp DE increased its holdings in shares of Sagimet Biosciences by 81.8% during the second quarter. Bank of America Corp DE now owns 9,943 shares of the company's stock valued at $76,000 after purchasing an additional 4,473 shares during the period. Virtu Financial LLC acquired a new position in shares of Sagimet Biosciences during the fourth quarter valued at $62,000. Finally, Jefferies Financial Group Inc. bought a new stake in shares of Sagimet Biosciences during the third quarter valued at about $95,000. 87.86% of the stock is owned by institutional investors.

More Sagimet Biosciences News

Here are the key news stories impacting Sagimet Biosciences this week:

• Positive Sentiment: FDA clears Phase 3 acne study: The FDA accepted Sagimet’s Investigational New Drug application and issued a “Study May Proceed” letter for a U.S. Phase 3 trial of oral, once-daily denifanstat in moderate to severe acne. The trial is expected to begin in the second half of 2026 and enroll approximately 800 patients, including about 450 adolescents. This advances the company’s lead program into a late-stage study and could materially improve its commercial prospects if efficacy and safety are confirmed. FDA Study May Proceed letter and IND clearance
• Positive Sentiment: Citizens JMP raises price target: Citizens JMP increased its target for Sagimet from $12 to $29 and maintained a “Market Outperform” rating. The higher target reflects stronger expectations for denifanstat’s development following the FDA clearance. Citizens JMP price target update
• Positive Sentiment: Additional analyst support: Canaccord Genuity also issued a bullish outlook for SGMT, adding to generally positive Wall Street sentiment around the company’s pipeline and potential future appreciation. Canaccord Genuity Sagimet forecast
• Negative Sentiment: Continued operating losses: Sagimet reported a quarterly loss of $0.26 per share, slightly worse than the $0.25 analyst consensus, while HC Wainwright lowered its fourth-quarter loss estimate to $0.32 per share. The company remains dependent on clinical progress and likely future financing.
• Negative Sentiment: Insider selling: Director George Kemble sold 20,206 shares for approximately $201,050, reducing his direct ownership by 24.5%. Although the sale may be routine, it could temper investor sentiment following the recent rally. George Kemble insider sale

About Sagimet Biosciences

Sagimet Biosciences NASDAQ: SGMT is a clinical-stage biotechnology company focused on developing novel therapies for fibrotic diseases. The company's lead program, CM-101, is a first-in-class fusion protein designed to neutralize the chemokine CCL24 and interrupt key drivers of tissue fibrosis. Preclinical data have demonstrated CM-101's potential to block fibrotic signaling pathways in multiple organ systems, and the company has advanced the program into early-stage clinical evaluation for indications such as nonalcoholic steatohepatitis and systemic sclerosis.

In addition to CM-101, Sagimet maintains a pipeline of preclinical candidates targeting inflammation-driven fibrotic processes.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source