Short Interest in Akebia Therapeutics, Inc. (NASDAQ:AKBA) Declines By 34.3%

Key Points

• Short interest in Akebia Therapeutics fell sharply in June, dropping 34.3% to 19.2 million shares as of June 30. That amounts to about 7.5% of the company’s shares being sold short, with a days-to-cover ratio of 2.7.
• CFO Erik Ostrowski sold 56,019 shares at an average price of $1.11, a transaction worth about $62,181. The filing said the sale was made to cover tax withholding obligations tied to vested equity awards.
• Analyst sentiment is mixed but slightly cautious, with a consensus rating of “Hold” and an average target price of $4.67. The stock closed around $1.40, well below its 12-month high of $4.04.

Akebia Therapeutics, Inc. (NASDAQ:AKBA - Get Free Report) saw a significant decline in short interest during the month of June. As of June 30th, there was short interest totaling 19,177,371 shares, a decline of 34.3% from the June 15th total of 29,201,925 shares. Based on an average daily volume of 7,120,957 shares, the days-to-cover ratio is currently 2.7 days. Approximately 7.5% of the company's shares are short sold.

Insiders Place Their Bets

In related news, CFO Erik Ostrowski sold 56,019 shares of the firm's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $1.11, for a total transaction of $62,181.09. Following the completion of the transaction, the chief financial officer directly owned 616,616 shares of the company's stock, valued at $684,443.76. This trade represents a 8.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 4.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Akebia Therapeutics

Institutional investors have recently bought and sold shares of the stock. Baird Financial Group Inc. boosted its holdings in Akebia Therapeutics by 23.0% during the 1st quarter. Baird Financial Group Inc. now owns 21,393 shares of the biopharmaceutical company's stock worth $41,000 after acquiring an additional 4,000 shares during the last quarter. Legal & General Group Plc raised its stake in Akebia Therapeutics by 26.0% in the 2nd quarter. Legal & General Group Plc now owns 23,279 shares of the biopharmaceutical company's stock valued at $85,000 after acquiring an additional 4,798 shares during the period. Polymer Capital Management US LLC raised its position in shares of Akebia Therapeutics by 49.5% in the third quarter. Polymer Capital Management US LLC now owns 18,232 shares of the biopharmaceutical company's stock valued at $50,000 after purchasing an additional 6,034 shares during the period. Deutsche Bank AG raised its holdings in Akebia Therapeutics by 5.2% during the 4th quarter. Deutsche Bank AG now owns 164,655 shares of the biopharmaceutical company's stock valued at $265,000 after acquiring an additional 8,103 shares during the period. Finally, Raymond James Financial Inc. grew its position in shares of Akebia Therapeutics by 16.8% in the second quarter. Raymond James Financial Inc. now owns 59,502 shares of the biopharmaceutical company's stock valued at $217,000 after purchasing an additional 8,568 shares in the last quarter. Institutional investors own 33.92% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. HC Wainwright reiterated a "buy" rating and issued a $6.00 price target on shares of Akebia Therapeutics in a research report on Wednesday, July 1st. Wall Street Zen lowered Akebia Therapeutics from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. BTIG Research reiterated a "buy" rating and issued a $4.00 target price on shares of Akebia Therapeutics in a report on Tuesday, April 7th. Zacks Research raised shares of Akebia Therapeutics from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Akebia Therapeutics in a research report on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Akebia Therapeutics currently has a consensus rating of "Hold" and a consensus target price of $4.67.

Akebia Therapeutics Stock Performance

NASDAQ AKBA opened at $1.40 on Friday. The company has a market cap of $375.56 million, a P/E ratio of -17.50 and a beta of 0.23. The company has a fifty day simple moving average of $1.11 and a 200 day simple moving average of $1.29. The company has a current ratio of 1.40, a quick ratio of 1.33 and a debt-to-equity ratio of 1.33. Akebia Therapeutics has a 12-month low of $0.82 and a 12-month high of $4.04.

Akebia Therapeutics (NASDAQ:AKBA - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The biopharmaceutical company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.02). Akebia Therapeutics had a negative return on equity of 62.72% and a negative net margin of 8.83%.The business had revenue of $53.54 million for the quarter, compared to analyst estimates of $51.67 million. Sell-side analysts predict that Akebia Therapeutics will post -0.1 earnings per share for the current fiscal year.

Akebia Therapeutics Company Profile

Akebia Therapeutics, Inc, a clinical-stage biopharmaceutical company headquartered in Cambridge, Massachusetts, is focused on the development and commercialization of therapies for patients with kidney disease. The company's lead product candidate, vadadustat, is an investigational oral hypoxia-inducible factor prolyl hydroxylase inhibitor designed to treat anemia associated with chronic kidney disease in both dialysis-dependent and non-dialysis patients. Akebia's research and development efforts also extend to preclinical programs targeting nephrology and related metabolic disorders.

Since its founding in 2007, Akebia has pursued strategic collaborations to advance its clinical pipeline and expand its market reach.

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