Wall Street Zen Downgrades Sagimet Biosciences (NASDAQ:SGMT) to Sell

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.

Sagimet Biosciences (NASDAQ:SGMT - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other brokerages also recently weighed in on SGMT. Jones Trading boosted their target price on Sagimet Biosciences from $15.00 to $27.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Canaccord Genuity Group began coverage on Sagimet Biosciences in a research note on Thursday, July 24th. They set a "buy" rating and a $28.00 target price on the stock. Wedbush began coverage on Sagimet Biosciences in a research note on Monday, August 11th. They set an "outperform" rating and a $28.00 target price on the stock. Finally, HC Wainwright upgraded Sagimet Biosciences to a "buy" rating and set a $29.00 target price on the stock in a research note on Thursday, August 7th. Six research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $25.67.

Sagimet Biosciences Stock Down 4.0%

Shares of NASDAQ SGMT opened at $6.76 on Friday. The business has a fifty day simple moving average of $8.42 and a two-hundred day simple moving average of $5.66. The firm has a market cap of $219.85 million, a PE ratio of -3.69 and a beta of 3.34. Sagimet Biosciences has a twelve month low of $1.73 and a twelve month high of $11.41.

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

Insider Buying and Selling

In related news, CEO David Happel sold 65,478 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $9.13, for a total value of $597,814.14. Following the completion of the transaction, the chief executive officer owned 689,722 shares of the company's stock, valued at approximately $6,297,161.86. This represents a 8.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, General Counsel Elizabeth Rozek sold 10,780 shares of the stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $9.13, for a total value of $98,421.40. Following the transaction, the general counsel directly owned 183,726 shares of the company's stock, valued at $1,677,418.38. The trade was a 5.54% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 84,535 shares of company stock valued at $771,805. 14.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sagimet Biosciences

A number of large investors have recently made changes to their positions in the stock. Millennium Management LLC grew its position in Sagimet Biosciences by 257.1% in the fourth quarter. Millennium Management LLC now owns 693,247 shares of the company's stock worth $3,120,000 after acquiring an additional 499,094 shares during the period. Bridgeway Capital Management LLC grew its position in Sagimet Biosciences by 231.6% in the second quarter. Bridgeway Capital Management LLC now owns 412,841 shares of the company's stock worth $3,146,000 after acquiring an additional 288,341 shares during the period. Jump Financial LLC purchased a new position in Sagimet Biosciences in the second quarter worth approximately $1,130,000. OMERS ADMINISTRATION Corp purchased a new position in Sagimet Biosciences in the fourth quarter worth approximately $263,000. Finally, Jane Street Group LLC purchased a new position in Sagimet Biosciences in the fourth quarter worth approximately $249,000. 87.86% of the stock is currently 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.

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