Sagimet Biosciences (NASDAQ:SGMT) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sagimet Biosciences (NASDAQ:SGMT) from a "hold" rating to a "sell" rating, signaling a negative outlook for the stock.
• Despite the downgrade, other brokerages have set target prices above current levels, with Jones Trading raising its price target from $15.00 to $27.00.
• Sagimet's stock has seen significant insider selling recently, including CEO David Happel selling 65,478 shares at an average price of $9.13.

Wall Street Zen cut shares of Sagimet Biosciences (NASDAQ:SGMT - Free Report) from a hold rating to a sell rating in a research note issued to investors on Saturday.

A number of other equities analysts have also recently commented on the stock. Wedbush started coverage on shares of Sagimet Biosciences in a research note on Monday, August 11th. They issued an "outperform" rating and a $28.00 price objective for the company. Canaccord Genuity Group started coverage on shares of Sagimet Biosciences in a research note on Thursday, July 24th. They issued a "buy" rating and a $28.00 price objective for the company. Jones Trading lifted their price objective on shares of Sagimet Biosciences from $15.00 to $27.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Finally, HC Wainwright raised shares of Sagimet Biosciences to a "buy" rating and set a $29.00 price objective for the company in a research note on Thursday, August 7th. Six research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Sagimet Biosciences has an average rating of "Buy" and a consensus price target of $25.67.

Sagimet Biosciences Trading Up 9.8%

SGMT traded up $0.60 during trading on Friday, hitting $6.75. 889,164 shares of the company traded hands, compared to its average volume of 428,710. The company has a market cap of $219.51 million, a PE ratio of -3.69 and a beta of 3.34. The stock's 50-day simple moving average is $8.19 and its two-hundred day simple moving average is $5.74. Sagimet Biosciences has a 1 year low of $1.73 and a 1 year high of $11.41.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) last posted its earnings results on Wednesday, August 13th. The company reported ($0.32) earnings per share for the quarter, beating the consensus estimate of ($0.52) by $0.20. Equities analysts expect that Sagimet Biosciences will post -1.6 EPS for the current year.

Insider Buying and Selling

In related news, CEO David Happel sold 65,478 shares of Sagimet Biosciences stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $9.13, for a total transaction of $597,814.14. Following the completion of the transaction, the chief executive officer directly owned 689,722 shares of the company's stock, valued at approximately $6,297,161.86. The trade was a 8.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Elizabeth Rozek sold 10,780 shares of Sagimet Biosciences stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $9.13, for a total transaction of $98,421.40. Following the transaction, the general counsel directly owned 183,726 shares of the company's stock, valued at approximately $1,677,418.38. This represents a 5.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 84,535 shares of company stock valued at $771,805. Company insiders own 14.70% of the company's stock.

Institutional Investors Weigh In On Sagimet Biosciences

Several large investors have recently added to or reduced their stakes in the stock. Millennium Management LLC boosted its position in Sagimet Biosciences by 257.1% in the 4th quarter. Millennium Management LLC now owns 693,247 shares of the company's stock valued at $3,120,000 after buying an additional 499,094 shares during the period. Bridgeway Capital Management LLC boosted its position in Sagimet Biosciences by 231.6% in the 2nd quarter. Bridgeway Capital Management LLC now owns 412,841 shares of the company's stock valued at $3,146,000 after buying an additional 288,341 shares during the period. Geode Capital Management LLC boosted its position in Sagimet Biosciences by 0.6% in the 2nd quarter. Geode Capital Management LLC now owns 265,324 shares of the company's stock valued at $2,023,000 after buying an additional 1,600 shares during the period. Jump Financial LLC purchased a new stake in Sagimet Biosciences in the 2nd quarter valued at about $1,130,000. Finally, OMERS ADMINISTRATION Corp boosted its position in Sagimet Biosciences by 46.3% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 85,600 shares of the company's stock valued at $279,000 after buying an additional 27,100 shares during the period. 87.86% of the stock is owned by hedge funds and other institutional investors.

About Sagimet Biosciences

Sagimet Biosciences Inc, a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional metabolic pathways in the United States. The company's lead drug candidate is Denifanstat, a once-daily pill and selective FASN inhibitor for the treatment of metabolic dysfunction associated steatohepatitis.