Terns Pharmaceuticals (NASDAQ:TERN) Sets New 12-Month High - Should You Buy?

Key Points

• Terns Pharmaceuticals shares hit a new 52-week high of $49.53 (last trade $49.13) on heavy volume of about 3.6 million shares, up from a prior close of $47.78.
• Multiple analysts have raised targets—Barclays to $56, Jefferies $70, Oppenheimer $58—resulting in a consensus Buy rating and an average price target of $58.11.
• Insiders sold 170,409 shares (~$6.56M) over the last quarter, including a recent CEO sale, leaving insiders with only 1.5% ownership, which may be a cautionary signal for some investors.

Terns Pharmaceuticals, Inc. (NASDAQ:TERN - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday . The company traded as high as $49.53 and last traded at $49.13, with a volume of 3613141 shares traded. The stock had previously closed at $47.78.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Barclays lifted their price objective on shares of Terns Pharmaceuticals from $36.00 to $56.00 and gave the company an "overweight" rating in a report on Tuesday, December 9th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $70.00 target price on shares of Terns Pharmaceuticals in a research report on Wednesday, December 10th. Oppenheimer lifted their price target on shares of Terns Pharmaceuticals from $28.00 to $58.00 and gave the company an "outperform" rating in a research note on Tuesday, December 9th. Weiss Ratings reissued a "sell (e+)" rating on shares of Terns Pharmaceuticals in a research report on Monday, December 29th. Finally, Citigroup restated an "outperform" rating on shares of Terns Pharmaceuticals in a report on Wednesday, November 26th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Terns Pharmaceuticals currently has an average rating of "Buy" and an average target price of $58.11.

Terns Pharmaceuticals Price Performance

The stock has a market capitalization of $5.10 billion, a P/E ratio of -47.70 and a beta of -0.31. The company's 50-day simple moving average is $39.44 and its 200-day simple moving average is $27.23.

Insider Activity

In other Terns Pharmaceuticals news, insider Emil Kuriakose sold 1,155 shares of the company's stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $38.57, for a total value of $44,548.35. Following the sale, the insider owned 50,365 shares in the company, valued at $1,942,578.05. This represents a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Amy L. Burroughs sold 14,583 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $46.71, for a total value of $681,171.93. Following the completion of the sale, the chief executive officer directly owned 288,976 shares of the company's stock, valued at approximately $13,498,068.96. The trade was a 4.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 170,409 shares of company stock valued at $6,563,769 over the last quarter. 1.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Terns Pharmaceuticals in the 4th quarter valued at $25,000. GAMMA Investing LLC increased its holdings in shares of Terns Pharmaceuticals by 762.4% in the fourth quarter. GAMMA Investing LLC now owns 871 shares of the company's stock valued at $35,000 after purchasing an additional 770 shares during the last quarter. iA Global Asset Management Inc. acquired a new position in shares of Terns Pharmaceuticals in the fourth quarter valued at $43,000. FNY Investment Advisers LLC bought a new position in shares of Terns Pharmaceuticals in the fourth quarter valued at about $80,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of Terns Pharmaceuticals by 61.6% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,207 shares of the company's stock valued at $89,000 after purchasing an additional 841 shares during the period. 98.26% of the stock is owned by institutional investors and hedge funds.

Terns Pharmaceuticals Company Profile

Terns Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing oral small‐molecule therapies for the treatment of chronic liver diseases and other serious conditions. The company's research and development efforts center on novel mechanisms of action designed to address the underlying causes of progressive liver disorders, including inflammation, fibrosis and metabolic dysregulation. By advancing targeted compounds that can be administered orally, Terns aims to offer patients more convenient and effective treatment options compared to injectable or biologic therapies.

The company's pipeline features several candidates in various stages of preclinical and clinical evaluation.

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