Terns Pharmaceuticals (NASDAQ:TERN) Sees Large Volume Increase – Still a Buy?

Shares of Terns Pharmaceuticals, Inc. (NASDAQ:TERN) saw strong trading volume on Wednesday . 53,166,030 shares were traded during trading, an increase of 1,672% from the previous session’s volume of 3,000,232 shares.The stock last traded at $52.7150 and had previously closed at $50.00.

Trending Headlines about Terns Pharmaceuticals

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

• Positive Sentiment: Merck reached a definitive agreement to acquire Terns for $53.00 per share in cash, anchoring near-term valuation and driving upside interest in the stock. Read More.
• Positive Sentiment: Deal cited as a strategic move by Merck to bolster its cancer/hematology pipeline ahead of Keytruda patent pressures, increasing buyer conviction for the acquisition rationale. Read More.
• Positive Sentiment: Terns’ lead program, TERN-701 (an oral allosteric BCR::ABL1 inhibitor for CML), is the primary asset driving Merck’s interest—this clinical asset underpins the transaction value. Read More.
• Neutral Sentiment: HC Wainwright reaffirmed a “neutral” rating with a $53.00 price target (roughly equal to the deal price), signaling limited incremental analyst upside beyond the announced offer. Read More.
• Neutral Sentiment: Transaction will be executed as a tender offer and is subject to stockholder participation and customary closing conditions; expected close guided to Q2 2026 — watch timing and regulatory steps. Read More.
• Negative Sentiment: Several investor-rights law firms have opened investigations alleging shareholders may not be receiving a fair price, which could lead to litigation and slow or alter deal terms. Read More.
• Negative Sentiment: Additional law firm outreach (Halper Sadeh) and prior insider selling activity have been flagged by data outlets—potential governance/optics concerns that investors should monitor. Read More.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. UBS Group raised shares of Terns Pharmaceuticals to a “strong-buy” rating in a report on Thursday, December 4th. Jefferies Financial Group reaffirmed a “buy” rating and set a $70.00 price objective on shares of Terns Pharmaceuticals in a research report on Wednesday, December 10th. Truist Financial increased their price objective on shares of Terns Pharmaceuticals from $35.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, December 9th. Mizuho raised their target price on shares of Terns Pharmaceuticals from $33.00 to $54.00 and gave the stock an “outperform” rating in a report on Tuesday, December 9th. Finally, BMO Capital Markets upped their target price on Terns Pharmaceuticals from $35.00 to $54.00 and gave the company an “outperform” rating in a report on Tuesday, December 9th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Terns Pharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus price target of $57.33.

Terns Pharmaceuticals Stock Performance

The business’s 50 day simple moving average is $40.32 and its 200-day simple moving average is $28.40. The stock has a market capitalization of $5.48 billion, a price-to-earnings ratio of -51.23 and a beta of -0.31.

Insider Buying and Selling

In related news, CEO Amy L. Burroughs sold 14,583 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was 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 directly owned 288,976 shares of the company’s stock, valued at $13,498,068.96. This represents a 4.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Emil Kuriakose sold 1,155 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $38.57, for a total value of $44,548.35. Following the completion of the sale, the insider owned 50,365 shares in the company, valued at approximately $1,942,578.05. This represents a 2.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 170,409 shares of company stock worth $6,563,769. Corporate insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Terns Pharmaceuticals in the fourth quarter worth 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 worth $35,000 after acquiring an additional 770 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Terns Pharmaceuticals by 61.6% in the fourth 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 in the last quarter. Vanguard Personalized Indexing Management LLC increased its stake in shares of Terns Pharmaceuticals by 5.1% during the fourth 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. raised its holdings in Terns Pharmaceuticals by 29.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,377 shares of the company’s stock worth $177,000 after purchasing an additional 994 shares in the last quarter. 98.26% of the stock is owned by institutional investors and hedge funds.

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.