Sagimet Biosciences Inc. (NASDAQ:SGMT) Receives Average Recommendation of “Moderate Buy” from Analysts

Sagimet Biosciences Inc. (NASDAQ:SGMT) has been assigned an average rating of “Moderate Buy” from the twelve research firms that are currently covering the company, Marketbeat reports. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and nine have given a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $26.52.

SGMT has been the subject of a number of analyst reports. Cantor Fitzgerald restated an “overweight” rating on shares of Sagimet Biosciences in a research report on Thursday. Canaccord Genuity Group boosted their price objective 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. Citigroup reissued a “market outperform” rating on shares of Sagimet Biosciences in a research note on Thursday. HC Wainwright restated a “buy” rating and issued a $29.00 target price on shares of Sagimet Biosciences in a report on Monday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sagimet Biosciences in a research note on Friday, July 17th.

Sagimet Biosciences Price Performance

Shares of NASDAQ SGMT opened at $9.37 on Friday. Sagimet Biosciences has a 1-year low of $4.50 and a 1-year high of $11.45. The business’s 50 day moving average is $9.78 and its two-hundred day moving average is $7.75. The stock has a market capitalization of $582.44 million, a P/E ratio of -7.32 and a beta of 3.46.

Sagimet Biosciences (NASDAQ:SGMT) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.01). As a group, equities research analysts anticipate that Sagimet Biosciences will post -1.19 earnings per share for the current fiscal year.

Key Headlines Impacting Sagimet Biosciences

Here are the key news stories impacting Sagimet Biosciences this week:

• Positive Sentiment: Denifanstat produced encouraging 52-week Phase 3 open-label extension results in moderate-to-severe acne. Treatment success reached 56.7%, while total lesions fell 71.8% and inflammatory lesions declined 76.9%. The drug was generally well tolerated, with no permanent discontinuations attributed to adverse events. U.S. AURORA Phase 3 screening is expected to begin in October. Sagimet Announces Positive Full 52-Week Results
• Positive Sentiment: Oppenheimer raised its price target on SGMT to $38 from $33 and maintained an “outperform” rating, signaling substantial perceived upside if denifanstat’s U.S. development program succeeds. Oppenheimer Raises Sagimet Price Target
• Neutral Sentiment: Citizens JMP maintained a “market outperform” rating but lowered its price target to $27 from $29, reflecting a more conservative valuation after the financing. Citizens JMP Lowers Sagimet Price Target
• Negative Sentiment: Sagimet completed an underwritten offering of 8.75 million Series A shares at $10 each, with certain investors receiving pre-funded warrants for an additional 2.75 million shares. The approximately $115 million in gross proceeds strengthen the balance sheet and fund development, but the new securities increase the potential share count and dilute existing holders. Sagimet Announces Closing of Underwritten Offering

Insiders Place Their Bets

In other news, Director George Kemble sold 20,206 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $9.95, for a total transaction of $201,049.70. Following the transaction, the director owned 62,161 shares of the company’s stock, valued at approximately $618,501.95. This represents a 24.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Elizabeth Rozek sold 10,545 shares of the stock in a transaction that occurred 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 completion of the sale, the insider owned 224,414 shares in the company, valued at approximately $1,741,452.64. The trade was a 4.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 113,646 shares of company stock valued at $920,491 over the last 90 days. Insiders own 11.50% of the company’s stock.

Hedge Funds Weigh In On Sagimet Biosciences

Hedge funds have recently bought and sold shares of the business. Renaissance Technologies LLC boosted its stake in shares of Sagimet Biosciences by 82.6% during the first quarter. Renaissance Technologies LLC now owns 625,469 shares of the company’s stock valued at $3,268,000 after purchasing an additional 282,969 shares during the period. Seven Fleet Capital Management LP purchased a new position in Sagimet Biosciences in the 2nd quarter worth about $3,119,000. Bank of New York Mellon Corp purchased a new position in Sagimet Biosciences in the 2nd quarter worth about $1,551,000. Dimensional Fund Advisors LP increased its stake in Sagimet Biosciences by 99.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 271,217 shares of the company’s stock worth $1,415,000 after buying an additional 135,178 shares during the period. Finally, AWM Investment Company Inc. bought a new stake in Sagimet Biosciences during the 2nd quarter valued at about $618,000. Institutional investors own 87.86% of the company’s stock.

About Sagimet Biosciences

Sagimet Biosciences, Inc is a clinical-stage biopharmaceutical company developing therapies for diseases associated with abnormal lipid metabolism. The company’s primary focus is fatty acid synthase (FASN), an enzyme involved in the production of fatty acids that can contribute to disease progression in certain metabolic and inflammatory conditions.

Sagimet’s lead product candidate is denifanstat, formerly known as TVB-2640. Denifanstat is an orally administered, selective FASN inhibitor being evaluated primarily for metabolic dysfunction-associated steatohepatitis (MASH), a chronic liver disease that can lead to fibrosis, cirrhosis and other serious complications.