Sagimet Biosciences (NASDAQ:SGMT) Stock Price Down 6.3% – Should You Sell?

Shares of Sagimet Biosciences Inc. (NASDAQ:SGMT) traded down 6.3% during trading on Tuesday. The company traded as low as $8.17 and last traded at $8.25. 679,902 shares were traded during trading, a decline of 43% from the average daily volume of 1,192,153 shares. The stock had previously closed at $8.80.

Analysts Set New Price Targets

SGMT has been the subject of a number of research analyst reports. Barclays raised Sagimet Biosciences from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $8.00 to $18.00 in a report on Wednesday, September 9th. Citizens Jmp decreased their price objective on Sagimet Biosciences from $29.00 to $27.00 and set a “market outperform” rating for the company in a report on Thursday, October 1st. Canaccord Genuity Group upped their price target on shares of Sagimet Biosciences from $49.00 to $56.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. HC Wainwright reaffirmed a “buy” rating and issued a $29.00 target price on shares of Sagimet Biosciences in a report on Monday, October 5th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Sagimet Biosciences in a research report on Friday, July 17th. Nine equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $26.63.

Sagimet Biosciences Price Performance

The firm has a market capitalization of $499.89 million, a PE ratio of -6.33 and a beta of 3.46. The company has a 50-day moving average price of $10.02 and a 200-day moving average price of $7.94.

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

Insider Buying and Selling at Sagimet Biosciences

In related news, insider Elizabeth Rozek sold 10,545 shares of the stock in a transaction on Monday, July 20th. The stock was sold at an average price of $7.76, for a total value of $81,829.20. Following the transaction, the insider directly owned 224,414 shares of the company’s stock, valued at approximately $1,741,452.64. This trade represents a 4.49% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Happel sold 64,051 shares of the firm’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $7.76, for a total transaction of $497,035.76. Following the completion of the transaction, the chief executive officer owned 741,570 shares in the company, valued at $5,754,583.20. The trade was a 7.95% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 113,646 shares of company stock worth $920,491 in the last quarter. 11.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Sagimet Biosciences

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Baird Financial Group Inc. increased 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 worth $121,000 after purchasing an additional 2,591 shares during the last quarter. Wellington Management Group LLP bought a new position in Sagimet Biosciences in the 2nd quarter worth about $315,000. Bank of America Corp DE lifted its holdings 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 worth $229,000 after purchasing an additional 33,982 shares during the period. AWM Investment Company Inc. bought a new position in Sagimet Biosciences during the 2nd quarter valued at $618,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Sagimet Biosciences in the 2nd quarter worth approximately $1,551,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

Sagimet Biosciences Company Profile

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.