Sagimet Biosciences (NASDAQ:SGMT) Stock Price Up 7.5% – What’s Next?

Sagimet Biosciences Inc. (NASDAQ:SGMT)’s stock price shot up 7.5% during trading on Thursday. The company traded as high as $8.11 and last traded at $8.12. Approximately 427,421 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 1,200,969 shares. The stock had previously closed at $7.55.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SGMT. The Goldman Sachs Group assumed coverage on shares of Sagimet Biosciences in a research report on Thursday, September 24th. They set a “sell” rating and a $7.00 price objective for the company. HC Wainwright reiterated a “buy” rating and set a $29.00 target price on shares of Sagimet Biosciences in a research note on Monday, October 5th. Guggenheim increased their target price on Sagimet Biosciences from $25.00 to $26.00 and gave the company a “buy” rating in a report on Friday, October 2nd. Canaccord Genuity Group raised their price target on Sagimet Biosciences from $49.00 to $56.00 and gave the company a “buy” rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sagimet Biosciences in a report on Thursday. Nine investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $26.63.

Sagimet Biosciences Price Performance

The company’s 50 day simple moving average is $9.97 and its 200 day simple moving average is $8.01. The company has a market capitalization of $498.52 million, a PE ratio of -6.27 and a beta of 3.46.

Sagimet Biosciences (NASDAQ:SGMT) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.01). On average, equities analysts forecast that Sagimet Biosciences Inc. will post -1.14 EPS for the current year.

Insider Buying and Selling

In other Sagimet Biosciences news, Director George Kemble sold 20,206 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $9.95, for a total value of $201,049.70. Following the completion of the transaction, the director owned 62,161 shares in the company, valued at $618,501.95. This represents a 24.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO David Happel sold 64,051 shares of the firm’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $7.76, for a total value of $497,035.76. Following the transaction, the chief executive officer directly owned 741,570 shares in the company, valued at approximately $5,754,583.20. The trade was a 7.95% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 113,646 shares of company stock worth $920,491 in the last ninety days. 11.50% of the stock is owned by corporate insiders.

Institutional Trading of Sagimet Biosciences

Several institutional investors and hedge funds have recently made changes to their positions in the company. Baird Financial Group Inc. boosted its position in shares of Sagimet Biosciences by 19.8% in the 2nd quarter. Baird Financial Group Inc. now owns 15,677 shares of the company’s stock valued at $121,000 after purchasing an additional 2,591 shares during the period. Wellington Management Group LLP acquired a new position in Sagimet Biosciences during the second quarter worth approximately $315,000. Bank of America Corp DE lifted its stake in Sagimet Biosciences by 344.1% in the first quarter. Bank of America Corp DE now owns 43,858 shares of the company’s stock valued at $229,000 after buying an additional 33,982 shares during the last quarter. AWM Investment Company Inc. purchased a new stake in Sagimet Biosciences in the second quarter valued at approximately $618,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Sagimet Biosciences in the second quarter valued at approximately $1,551,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

About Sagimet Biosciences

Sagimet Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing medicines that target fatty acid synthase (FASN), an enzyme involved in the production of fatty acids. The company’s research is aimed at treating diseases associated with abnormal lipid metabolism and excess fat production.

Sagimet’s lead investigational product is denifanstat, an oral, selective FASN inhibitor formerly known as TVB-2640. The company is evaluating denifanstat primarily for metabolic dysfunction-associated steatohepatitis (MASH), a chronic liver disease that can involve inflammation, fat accumulation and fibrosis.