Soleno Therapeutics (NASDAQ:SLNO) Earns Peer Perform Rating from Wolfe Research

Key Points

• Neurocrine agreed to acquire Soleno for $53 per share (~$2.9 billion), about a 34% premium to pre-announcement levels, and trading in SLNO was temporarily halted ahead of the disclosure.
• Multiple securities class-action lawsuits and shareholder fairness probes have been filed alleging undisclosed risks and unfair deal terms, creating legal risk that could delay or alter the transaction.
• Analyst sentiment has soured — Wolfe Research restated a "peer perform" rating and several firms cut ratings or price targets; the consensus remains a "Moderate Buy" with an average target of $97.10.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report)'s stock had its "peer perform" rating restated by investment analysts at Wolfe Research in a research note issued to investors on Tuesday,Benzinga reports.

Several other analysts also recently weighed in on SLNO. Lifesci Capital downgraded Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a research note on Monday. Zacks Research downgraded shares of Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 3rd. Wells Fargo & Company decreased their price target on shares of Soleno Therapeutics from $114.00 to $110.00 and set an "overweight" rating on the stock in a research note on Friday, February 27th. HC Wainwright decreased their price objective on Soleno Therapeutics from $120.00 to $100.00 and set a "buy" rating on the stock in a research report on Wednesday, March 4th. Finally, TD Cowen dropped their target price on Soleno Therapeutics from $120.00 to $85.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $97.10.

Soleno Therapeutics Stock Up 0.0%

Shares of Soleno Therapeutics stock opened at $52.26 on Tuesday. The company has a current ratio of 5.80, a quick ratio of 5.55 and a debt-to-equity ratio of 0.11. Soleno Therapeutics has a 1 year low of $29.43 and a 1 year high of $90.32. The stock has a 50-day moving average price of $37.99 and a 200 day moving average price of $47.81. The company has a market cap of $2.70 billion, a P/E ratio of 227.21 and a beta of -2.81.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.64 by $0.16. The company had revenue of $91.73 million for the quarter, compared to analyst estimates of $88.55 million. As a group, analysts expect that Soleno Therapeutics will post -3.72 EPS for the current fiscal year.

Institutional Investors Weigh In On Soleno Therapeutics

Hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Soleno Therapeutics by 1.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,360 shares of the company's stock valued at $1,242,000 after purchasing an additional 189 shares in the last quarter. Raymond James Financial Inc. acquired a new position in shares of Soleno Therapeutics during the second quarter worth $25,000. Avanza Fonder AB raised its stake in Soleno Therapeutics by 11.2% during the fourth quarter. Avanza Fonder AB now owns 3,195 shares of the company's stock worth $148,000 after buying an additional 323 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in Soleno Therapeutics by 11.9% in the third quarter. Principal Financial Group Inc. now owns 3,197 shares of the company's stock valued at $216,000 after buying an additional 340 shares during the period. Finally, New York State Common Retirement Fund boosted its position in Soleno Therapeutics by 2.4% during the third quarter. New York State Common Retirement Fund now owns 15,600 shares of the company's stock valued at $1,055,000 after acquiring an additional 360 shares during the last quarter. Institutional investors and hedge funds own 97.42% of the company's stock.

More Soleno Therapeutics News

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

• Positive Sentiment: Neurocrine agreed to acquire Soleno for $53.00 per share in cash (~$2.9 billion), a ~34% premium to pre-announcement levels; Neurocrine says VYKAT XR strengthens its rare-disease portfolio and a conference call was scheduled to discuss the transaction. Neurocrine to acquire Soleno (BusinessWire)
• Neutral Sentiment: Trading in SLNO was temporarily halted prior to the announcement for “news pending,” a routine market response that preceded the takeover disclosure and limited intraday liquidity around the news.
• Negative Sentiment: Multiple securities class-action lawsuits and law-firm solicitations have been filed or announced alleging that Soleno misstated or concealed risks around its DCCR/VYKAT XR program; firms (Rosen, Hagens Berman, Bronstein, Levi & Korsinsky, Schall, Gross, DJS and others) are soliciting lead plaintiffs with a May 5 deadline. This litigation creates legal risk, potential settlement costs and distraction for management. Investor alert / class action (GlobeNewswire)
• Negative Sentiment: Several shareholder-rights firms and advisors are investigating whether the $53 per-share deal is fair to Soleno public shareholders and whether the board fulfilled fiduciary duties — these fairness probes can lead to litigation or demands that delay closing or alter terms. Fairness investigation (Halper Sadeh / BusinessWire)
• Negative Sentiment: Analyst sentiment has soured: Cantor Fitzgerald cut SLNO to “hold” and trimmed its price target to $53 (now aligned with the deal price) and Lifesci Capital downgraded from “strong-buy” to “hold.” These downgrades can dampen buying interest absent a higher bid or strategic alternative. Cantor Fitzgerald downgrade (Benzinga) Lifesci downgrade (Zacks)
• Negative Sentiment: Soleno voluntarily withdrew its EU marketing application for the Prader–Willi hyperphagia treatment (VYKAT XR), which could limit near-term international expansion and reduces the product’s addressable market outside the U.S. EU application withdrawal (TipRanks)

Soleno Therapeutics Company Profile

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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