Short Interest in Fractyl Health, Inc. (NASDAQ:GUTS) Decreases By 55.7%

Key Points

• Short interest in Fractyl Health plunged 55.7% to 5,831,445 shares as of March 13 (down from 13,162,054 on Feb 26), representing 5.8% of shares outstanding and a short-interest ratio of 2.5 days.
• The stock is trading low (down 5.4% to $0.47, market cap ~$64.9M) and analyst sentiment is mixed with a consensus "Hold" and an average price target of $5.40 after three Buy, one Hold and one Sell rating; Morgan Stanley notably cut its target to $2.00.
• Fractyl recently reported a quarterly EPS beat ($0.15 vs. -$0.19 expected), though analysts still project a full-year loss (consensus -1.61 EPS).

Fractyl Health, Inc. (NASDAQ:GUTS - Get Free Report) was the target of a significant drop in short interest in the month of March. As of March 13th, there was short interest totaling 5,831,445 shares, a drop of 55.7% from the February 26th total of 13,162,054 shares. Based on an average daily volume of 2,357,267 shares, the short-interest ratio is currently 2.5 days. Currently, 5.8% of the shares of the company are sold short.

Wall Street Analyst Weigh In

Several research firms have commented on GUTS. Weiss Ratings reiterated a "sell (d-)" rating on shares of Fractyl Health in a report on Monday, December 29th. Morgan Stanley cut shares of Fractyl Health from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $8.00 to $2.00 in a report on Thursday, January 29th. Canaccord Genuity Group restated a "buy" rating and set a $8.00 price objective on shares of Fractyl Health in a research report on Thursday. Finally, HC Wainwright restated a "buy" rating and set a $8.00 price objective on shares of Fractyl Health in a report on Tuesday, December 2nd. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $5.40.

Fractyl Health Trading Down 5.4%

GUTS stock traded down $0.03 during trading hours on Thursday, hitting $0.47. 1,915,854 shares of the stock were exchanged, compared to its average volume of 5,860,627. Fractyl Health has a 12 month low of $0.38 and a 12 month high of $3.03. The firm has a market capitalization of $64.85 million, a P/E ratio of -0.26 and a beta of 1.51. The company has a 50-day simple moving average of $0.76 and a two-hundred day simple moving average of $1.29.

Fractyl Health (NASDAQ:GUTS - Get Free Report) last announced its earnings results on Tuesday, March 24th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.19) by $0.34. On average, equities research analysts predict that Fractyl Health will post -1.61 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Jane Street Group LLC acquired a new stake in shares of Fractyl Health in the second quarter valued at approximately $31,000. FNY Investment Advisers LLC bought a new stake in shares of Fractyl Health in the third quarter valued at approximately $31,000. Jump Financial LLC acquired a new stake in Fractyl Health during the fourth quarter worth approximately $57,000. Scientech Research LLC acquired a new stake in Fractyl Health during the third quarter worth approximately $49,000. Finally, Prelude Capital Management LLC bought a new position in Fractyl Health during the 3rd quarter worth $55,000.

About Fractyl Health

Fractyl Health, Inc is a clinical-stage medical technology company focused on the development and commercialization of minimally invasive, endoscopic therapies for metabolic diseases. Headquartered in Lexington, Massachusetts, Fractyl is advancing treatments that target the underlying physiology of conditions such as type 2 diabetes, obesity and nonalcoholic fatty liver disease (NAFLD) by modifying the duodenal mucosa to improve metabolic control.

The company's lead product, Revita® Duodenal Mucosal Resurfacing (Revita DMR), employs a catheter-based hydrothermal ablation technique to remodel the lining of the upper small intestine.

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