Traders Buy Large Volume of Terns Pharmaceuticals Put Options (NASDAQ:TERN)

Terns Pharmaceuticals, Inc. (NASDAQ:TERN) was the recipient of some unusual options trading on Friday. Stock investors purchased 7,719 put options on the stock. This represents an increase of approximately 96% compared to the typical daily volume of 3,932 put options.

Insider Activity at Terns Pharmaceuticals

In other Terns Pharmaceuticals news, insider Emil Kuriakose sold 1,155 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 50,365 shares of the company’s stock, valued at approximately $1,942,578.05. This trade represents a 2.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Amy L. Burroughs sold 14,583 shares of Terns Pharmaceuticals 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 transaction, the chief executive officer owned 288,976 shares in the company, valued at $13,498,068.96. This trade represents a 4.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 170,409 shares of company stock valued at $6,563,769. 1.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Morgan Stanley grew its holdings in Terns Pharmaceuticals by 4.7% in the fourth quarter. Morgan Stanley now owns 7,945,608 shares of the company’s stock valued at $321,003,000 after purchasing an additional 356,513 shares during the period. Commodore Capital LP purchased a new position in Terns Pharmaceuticals during the third quarter worth approximately $42,807,000. Adage Capital Partners GP L.L.C. raised its stake in Terns Pharmaceuticals by 40.9% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 5,550,000 shares of the company’s stock worth $224,220,000 after purchasing an additional 1,611,000 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Terns Pharmaceuticals by 21.1% in the 4th quarter. Vanguard Group Inc. now owns 5,523,948 shares of the company’s stock valued at $223,167,000 after purchasing an additional 964,031 shares during the last quarter. Finally, Vestal Point Capital LP purchased a new stake in shares of Terns Pharmaceuticals during the 4th quarter valued at $181,800,000. 98.26% of the stock is currently owned by hedge funds and other institutional investors.

Terns Pharmaceuticals Stock Down 0.3%

Shares of TERN stock traded down $0.17 during mid-day trading on Friday, hitting $53.01. 4,179,159 shares of the company’s stock were exchanged, compared to its average volume of 3,921,963. The stock has a market cap of $5.50 billion, a price-to-earnings ratio of -51.46 and a beta of -0.31. Terns Pharmaceuticals has a fifty-two week low of $1.87 and a fifty-two week high of $53.19. The stock has a 50-day simple moving average of $40.96 and a two-hundred day simple moving average of $28.74.

Terns Pharmaceuticals News Roundup

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

• Positive Sentiment: Merck agreed to acquire Terns for about $6.7 billion, adding Terns’ leukemia/CML candidate to Merck’s oncology pipeline — a clear strategic rationale that put a takeover premium on TERN shares. Read More.
• Positive Sentiment: Market reaction: TERN shares spiked on takeover reports and hit a new 52-week high as investors priced in the cash offer and potential for a competing bid. Read More.
• Positive Sentiment: Analyst/media commentary frames the deal as a strategic win for Merck (fills oncology gaps ahead of Keytruda patent challenges), reinforcing the logic behind the acquisition premium. Read More.
• Neutral Sentiment: HC Wainwright reiterated a Neutral rating and published FY2030 EPS estimates (loss forecast), leaving their price target at $53 — signaling limited upside from current deal terms absent a competing bidder. Read More.
• Negative Sentiment: Several brokerages (Citizens JMP, TD Cowen) downgraded TERN to Hold from Buy/Outperform, reflecting reduced upside if the $53 cash deal is the definitive outcome. Read More.
• Negative Sentiment: Shareholder litigation and investigations have been announced (Kahn Swick & Foti; M&A Class Action Firm / Monteverde), challenging whether the $53 price and sale process are adequate — legal actions can delay closing, increase costs, or pressure deal terms. Read More.
• Neutral Sentiment: Coverage noting a potential bidding war/debate over valuation: if other bidders emerge, price could rise; if not, $53 may cap upside. This creates two-way risk for shareholders. Read More.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on TERN shares. Weiss Ratings reissued a “sell (e+)” rating on shares of Terns Pharmaceuticals in a research note on Monday, December 29th. Wall Street Zen downgraded shares of Terns Pharmaceuticals from a “hold” rating to a “sell” rating in a report on Saturday, March 21st. Citizens Jmp downgraded shares of Terns Pharmaceuticals from a “market outperform” rating to a “hold” rating in a research report on Thursday. Leerink Partners initiated coverage on Terns Pharmaceuticals in a report on Monday, February 9th. They issued an “outperform” rating and a $58.00 price target on the stock. Finally, Oppenheimer raised their price objective on Terns Pharmaceuticals from $28.00 to $58.00 and gave the company an “outperform” rating in a research note on Tuesday, December 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $56.90.

About Terns Pharmaceuticals

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.