Soleno Therapeutics (NASDAQ:SLNO) Downgraded to "Hold" Rating by Piper Sandler

Key Points

• Piper Sandler downgraded Soleno Therapeutics from "strong‑buy" to "hold" and several other firms have similarly cut ratings, leaving a consensus analyst rating of Hold with a $93.90 average price target.
• Neurocrine agreed to acquire Soleno for about $2.9 billion, offering $53.00 per share in cash, which creates a near‑term liquidity event and a floor for shareholder value.
• Multiple securities class‑action lawsuits and investor/M&A investigations into disclosures and deal fairness, plus recent sell‑side downgrades, introduce legal and sentiment risks that could delay the transaction or limit upside beyond the offer.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report) was downgraded by investment analysts at Piper Sandler from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

SLNO has been the subject of a number of other research reports. Wolfe Research cut Soleno Therapeutics from an "outperform" rating to a "hold" rating in a research report on Tuesday. Robert W. Baird cut Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a research report on Monday. HC Wainwright dropped their price objective on Soleno Therapeutics from $120.00 to $100.00 and set a "buy" rating for the company in a research report on Wednesday, March 4th. TD Cowen cut Soleno Therapeutics from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $85.00 to $53.00 in a research report on Tuesday. Finally, Zacks Research cut Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 3rd. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $93.90.

Soleno Therapeutics Stock Performance

Shares of SLNO opened at $52.35 on Tuesday. The company has a market capitalization of $2.70 billion, a price-to-earnings ratio of 227.62 and a beta of -2.81. Soleno Therapeutics has a 52-week low of $29.43 and a 52-week high of $90.32. The stock has a 50 day moving average price of $38.17 and a 200 day moving average price of $47.80. The company has a quick ratio of 5.55, a current ratio of 5.80 and a debt-to-equity ratio of 0.11.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.16. The firm had revenue of $91.73 million during the quarter, compared to analyst estimates of $88.55 million. Research analysts predict that Soleno Therapeutics will post -3.72 EPS for the current fiscal year.

Hedge Funds Weigh In On Soleno Therapeutics

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Soleno Therapeutics by 1.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,360 shares of the company's stock worth $1,242,000 after purchasing an additional 189 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Soleno Therapeutics by 50.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 633,110 shares of the company's stock worth $45,236,000 after buying an additional 213,667 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Soleno Therapeutics by 48.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 40,715 shares of the company's stock worth $2,909,000 after buying an additional 13,211 shares during the last quarter. Creative Planning bought a new position in Soleno Therapeutics during the 2nd quarter worth $338,000. Finally, Prudential Financial Inc. bought a new position in Soleno Therapeutics during the 2nd quarter worth $413,000. 97.42% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Soleno Therapeutics

Here are the key news stories impacting Soleno Therapeutics this week:

• Positive Sentiment: Neurocrine agreed to acquire Soleno for about $2.9B, offering $53.00 per share in cash (a meaningful premium to recent trade); the deal provides a near‑term liquidity event and floor for shareholder value. Neurocrine to Buy Soleno for $2.9 Billion
• Positive Sentiment: Market commentary and coverage noted the $53/share offer and framed it as a strategic fit for Neurocrine’s rare‑disease/endocrinology push, supporting near‑term upside to the transaction price if the deal closes. Neurocrine Biosciences to acquire Soleno Therapeutics
• Neutral Sentiment: Soleno voluntarily withdrew its European marketing application for its Prader‑Willi treatment as Neurocrine sharpens focus on the U.S. market — a programmatic change that reduces near‑term EU regulatory exposure but removes a potential international revenue opportunity. Soleno withdraws EU rare disease drug application ahead of Neurocrine takeover
• Negative Sentiment: Several sell‑side firms downgraded or cut price targets (Cantor Fitzgerald, Wolfe Research, Lifesci; TD Cowen cut its target to $53 from $85) — analyst caution could pressure sentiment and constrain upside beyond the deal price. Cantor Fitzgerald Downgrades Soleno Therapeutics
• Negative Sentiment: Multiple securities class‑action lawsuits, and a flurry of law‑firm notices seeking lead plaintiffs, allege disclosures issues tied to the DCCR (VYKAT XR) program; several firms are investigating the fairness of the Neurocrine deal and potential fiduciary claims — these legal risks can create deal uncertainty, potential remediation costs, and timeline delays. Soleno Therapeutics, Inc. (SLNO) Class Action Lawsuit
• Negative Sentiment: Investor‑rights and M&A litigation firms have launched investigations into whether Soleno’s board obtained a fair price and whether prior disclosures misstated drug risks — these actions raise the chance of post‑deal litigation or negotiated adjustments. Halper Sadeh investigation into sale price

About Soleno Therapeutics

Soleno Therapeutics, Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of therapies for rare and orphan diseases. Headquartered in Redwood City, California, Soleno leverages a precision medicine approach to identify and advance small‐molecule treatments that address underlying genetic and metabolic dysfunctions. The company's scientific strategy centers on repurposing and reformulating existing compounds to maximize therapeutic benefit in underserved patient populations.

The company's lead candidate, diazoxide choline controlled release (DCCR), is being investigated for the treatment of Prader-Willi syndrome (PWS), a complex neurodevelopmental disorder characterized by insatiable appetite, hormonal imbalances and behavioral challenges.

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