Septerna (NASDAQ:SEPN) Stock Price Up 9% Following Earnings Beat

Key Points

• Septerna shares rose 9% after the clinical-stage biotech reported quarterly EPS of negative $0.29, beating estimates of negative $0.43, while revenue of $26.75 million exceeded the $19.22 million consensus.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $46.56; targets range from $40 to $53, although one firm maintains a sell rating.
• Institutional investors added to their positions, but company insiders have sold 47,828 shares worth approximately $1.58 million over the past 90 days. Septerna remains unprofitable, with a negative net margin of 49.88% and a negative return on equity of 12.72%.

Septerna, Inc. (NASDAQ:SEPN - Get Free Report) shares traded up 9% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $41.89 and last traded at $42.3630. 37,326 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 344,609 shares. The stock had previously closed at $38.85.

The company reported ($0.29) EPS for the quarter, beating analysts' consensus estimates of ($0.43) by $0.14. The company had revenue of $26.75 million for the quarter, compared to analyst estimates of $19.22 million. Septerna had a negative net margin of 49.88% and a negative return on equity of 12.72%.

Wall Street Analysts Forecast Growth

SEPN has been the topic of a number of research analyst reports. HC Wainwright restated a "buy" rating and set a $40.00 price target on shares of Septerna in a report on Wednesday, July 1st. Stifel Nicolaus started coverage on shares of Septerna in a research report on Friday, May 1st. They set a "buy" rating and a $43.00 target price on the stock. Raymond James Financial increased their target price on shares of Septerna from $47.00 to $53.00 and gave the stock a "strong-buy" rating in a research note on Monday, June 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Septerna in a research note on Friday, July 17th. Finally, Truist Financial upped their price objective on shares of Septerna from $35.00 to $43.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $46.56.

Insiders Place Their Bets

In other news, SVP Daniel D. Long sold 3,334 shares of Septerna stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $34.47, for a total transaction of $114,922.98. Following the completion of the transaction, the senior vice president directly owned 96,412 shares in the company, valued at $3,323,321.64. This trade represents a 3.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Samira Shaikhly sold 2,178 shares of the business's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $35.18, for a total transaction of $76,622.04. Following the sale, the insider directly owned 793 shares of the company's stock, valued at approximately $27,897.74. The trade was a 73.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 47,828 shares of company stock valued at $1,584,314 in the last 90 days. 5.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Septerna

Institutional investors have recently bought and sold shares of the stock. First Light Asset Management LLC lifted its holdings in Septerna by 18.0% during the first quarter. First Light Asset Management LLC now owns 732,860 shares of the company's stock worth $17,611,000 after acquiring an additional 112,049 shares during the period. Y Intercept Hong Kong Ltd bought a new position in Septerna in the 1st quarter valued at $619,000. Janus Henderson Group PLC bought a new position in Septerna in the 1st quarter valued at $21,334,000. Swiss National Bank purchased a new stake in shares of Septerna during the 1st quarter valued at $531,000. Finally, Renaissance Technologies LLC purchased a new stake in shares of Septerna during the 1st quarter valued at $906,000.

Septerna Stock Performance

The company has a market capitalization of $1.88 billion, a P/E ratio of -51.87 and a beta of 2.29. The stock has a 50 day moving average price of $34.58 and a 200 day moving average price of $29.10.

About Septerna

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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