Mizuho Downgrades Terns Pharmaceuticals (NASDAQ:TERN) to Hold

Terns Pharmaceuticals (NASDAQ:TERN) was downgraded by Mizuho from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday,Zacks.com reports.

Other equities analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Terns Pharmaceuticals from a “hold” rating to a “sell” rating in a report on Saturday, March 21st. UBS Group raised shares of Terns Pharmaceuticals to a “strong-buy” rating in a report on Thursday, December 4th. HC Wainwright reiterated a “neutral” rating and issued a $53.00 target price on shares of Terns Pharmaceuticals in a research report on Wednesday. Barclays increased their target price on Terns Pharmaceuticals from $36.00 to $56.00 and gave the company an “overweight” rating in a research note on Tuesday, December 9th. Finally, Oppenheimer raised their price target on Terns Pharmaceuticals from $28.00 to $58.00 and gave the company an “outperform” rating in a research report on Tuesday, December 9th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Terns Pharmaceuticals has a consensus rating of “Moderate Buy” and an average target price of $56.90.

Terns Pharmaceuticals Price Performance

Shares of TERN opened at $52.92 on Friday. The firm’s 50 day simple moving average is $41.28 and its 200 day simple moving average is $29.06. The company has a market capitalization of $5.49 billion, a P/E ratio of -51.38 and a beta of -0.31. Terns Pharmaceuticals has a 1-year low of $1.87 and a 1-year high of $53.19.

Insider Buying and Selling

In related news, CEO Amy L. Burroughs sold 14,583 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $46.71, for a total transaction of $681,171.93. Following the transaction, the chief executive officer owned 288,976 shares of the company’s stock, valued at approximately $13,498,068.96. This trade represents a 4.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Emil Kuriakose sold 1,155 shares of Terns Pharmaceuticals stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $38.57, for a total transaction of $44,548.35. Following the completion of the transaction, the insider owned 50,365 shares in the company, valued at approximately $1,942,578.05. The trade was a 2.24% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 170,409 shares of company stock valued at $6,563,769. Company insiders own 1.50% of the company’s stock.

Institutional Trading of Terns Pharmaceuticals

Several institutional investors have recently added to or reduced their stakes in TERN. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Terns Pharmaceuticals during the fourth quarter valued at about $25,000. GAMMA Investing LLC lifted its stake in shares of Terns Pharmaceuticals by 762.4% in the 4th quarter. GAMMA Investing LLC now owns 871 shares of the company’s stock valued at $35,000 after acquiring an additional 770 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Terns Pharmaceuticals by 61.6% in the 4th quarter. EverSource Wealth Advisors LLC now owns 2,207 shares of the company’s stock valued at $89,000 after acquiring an additional 841 shares during the last quarter. Vanguard Personalized Indexing Management LLC boosted its holdings in Terns Pharmaceuticals by 5.1% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 18,555 shares of the company’s stock valued at $750,000 after acquiring an additional 906 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. boosted its holdings in Terns Pharmaceuticals by 29.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,377 shares of the company’s stock valued at $177,000 after acquiring an additional 994 shares during the period. 98.26% of the stock is currently owned by hedge funds and other institutional investors.

Terns Pharmaceuticals News Summary

Here are the key news stories impacting Terns Pharmaceuticals this week:

• Positive Sentiment: Merck agreed to acquire Terns for about $6.7 billion in cash, bringing a late‑stage leukemia candidate into MRK’s oncology lineup—this deal narrative is the primary bullish catalyst supporting a sharp rally toward the $53 offer price. Merck to Buy Terns for $6.7 Billion to Grow in Blood Cancers
• Positive Sentiment: Analysts and news outlets emphasize Merck’s acquisition as strategic—adding a leukemia asset as Keytruda faces patent pressure—supporting upside sentiment for TERN shares. Merck to Boost Oncology Pipeline With $6.7B Terns Buyout, Stock Up
• Positive Sentiment: Market commentary notes a possible bidding‑war dynamic after the Merck approach, which can lift the stock above the announced offer if other suitors emerge. Merck’s deal for Terns sparks debate over a possible biotech bidding war
• Positive Sentiment: Market reaction has pushed TERN to a new 52‑week high as investors price in the deal and potential takeover premium. Terns Pharmaceuticals (NASDAQ:TERN) Hits New 52-Week High – Still a Buy?
• Neutral Sentiment: HC Wainwright reiterated a “Neutral” rating and published FY2030 estimates and a $53.00 price target—its view aligns with the announced cash price, leaving limited analyst upside ahead of deal closure. HC Wainwright Reaffirms Neutral Rating for Terns Pharmaceuticals (NASDAQ:TERN)
• Negative Sentiment: Unusually large put option activity was reported (7,719 puts, a ~96% increase vs. typical put volume), suggesting some traders are hedging or positioning for downside/uncertainty around deal terms or timing.
• Negative Sentiment: A shareholder law firm (Kahn Swick & Foti) opened an investigation into the adequacy of the $53 per‑share price and the sale process, which could lead to litigation or delay and adds execution risk. Terns Pharmaceuticals Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Terns Pharmaceuticals, Inc. – TERN
• Negative Sentiment: Several brokers trimmed coverage or lowered stances to “Hold” (Citizens/JMP, TD Cowen), reducing near‑term buy-side reinforcement; TD Cowen’s $53 target effectively prices the deal in with little upside. Benzinga

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.