Septerna, Inc. (NASDAQ:SEPN) Sees Significant Growth in Short Interest

Key Points

• Short interest in Septerna rose 12.9% in April to 2,457,303 shares, equal to 5.7% of shares sold short and a short-interest ratio of 8.1 days based on average daily volume.
• Insiders have been net sellers recently — 78,453 shares sold in the last three months, including Samira Shaikhly's March sale of 70,453 shares (a 98.89% reduction in her holdings); insiders now own 4.30% of the company.
• Despite negative recent results (Q1 EPS -$0.24 and consensus -$1.57 for the year) and negative margins, analysts hold a Moderate Buy consensus with an average target price of $43.14 and highs up to $60.00.

Septerna, Inc. (NASDAQ:SEPN - Get Free Report) was the recipient of a significant growth in short interest in April. As of April 15th, there was short interest totaling 2,457,303 shares, a growth of 12.9% from the March 31st total of 2,176,719 shares. Based on an average daily volume of 304,769 shares, the short-interest ratio is presently 8.1 days. Currently, 5.7% of the shares of the stock are sold short.

Septerna Trading Up 1.3%

NASDAQ SEPN opened at $23.76 on Friday. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of -21.41 and a beta of 3.50. The company has a 50 day moving average of $25.77 and a 200-day moving average of $25.34. Septerna has a 1-year low of $6.41 and a 1-year high of $32.63.

Septerna (NASDAQ:SEPN - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The company reported ($0.24) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.01). Septerna had a negative return on equity of 15.85% and a negative net margin of 106.37%. On average, analysts forecast that Septerna will post -1.57 earnings per share for the current year.

Insider Activity

In related news, insider Samira Shaikhly sold 70,453 shares of the stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $28.10, for a total value of $1,979,729.30. Following the completion of the transaction, the insider owned 793 shares of the company's stock, valued at $22,283.30. This represents a 98.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Elizabeth Bhatt sold 4,000 shares of the stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $24.34, for a total transaction of $97,360.00. Following the completion of the transaction, the chief operating officer directly owned 174,209 shares of the company's stock, valued at $4,240,247.06. This trade represents a 2.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 78,453 shares of company stock valued at $2,192,969 in the last three months. Company insiders own 4.30% of the company's stock.

Institutional Trading of Septerna

Hedge funds and other institutional investors have recently modified their holdings of the stock. Group One Trading LLC increased its holdings in shares of Septerna by 111.8% in the fourth quarter. Group One Trading LLC now owns 944 shares of the company's stock valued at $26,000 after purchasing an additional 8,955 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Septerna in the fourth quarter valued at approximately $35,000. Russell Investments Group Ltd. acquired a new stake in shares of Septerna in the third quarter valued at approximately $36,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Septerna in the fourth quarter valued at approximately $53,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Septerna in the fourth quarter valued at approximately $61,000.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on SEPN shares. Wells Fargo & Company increased their price target on shares of Septerna from $28.00 to $48.00 and gave the stock an "overweight" rating in a research report on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Septerna in a research report on Tuesday, April 21st. HC Wainwright reaffirmed a "buy" rating and set a $40.00 price objective on shares of Septerna in a report on Tuesday, April 14th. Wall Street Zen lowered shares of Septerna from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $60.00 price objective on shares of Septerna in a report on Tuesday, March 10th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $43.14.

Septerna Company Profile

We are a clinical-stage biotechnology company pioneering a new era of G protein-coupled receptor (GPCR) oral small molecule drug discovery powered by our proprietary Native Complex Platform™. Our industrial-scale platform aims to unlock the full potential of GPCR therapies and has led to the discovery and development of our deep pipeline of product candidates focused initially on treating patients in three therapeutic areas: endocrinology, immunology and inflammation, and metabolic diseases. GPCRs are the largest and most diverse family of cell membrane receptors and regulate physiological processes in nearly every organ system of the human body.

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