Jonathan Young, the Chief Operating Officer of Akero Therapeutics, Inc. (NASDAQ:), has recently sold shares of the company’s stock, according to a new SEC filing. The transactions, executed on August 1, 2024, involved a total sale of $133,755 worth of shares, with individual share prices ranging from $26.44 to $27.23.
The filing detailed two separate sales made by Young. In the first sale, he sold 3,031 shares at an average price of $26.44. The second sale consisted of 1,969 shares sold at an average price of $27.23. It is noted in the footnotes that these were weighted-average prices, indicating that the shares were sold in multiple transactions at various prices within the given ranges. Specifically, the first batch of shares was sold at prices ranging from $26.19 to $26.81, while the second batch was sold at prices between $26.91 and $27.88.
Following the transactions, Young still holds a significant number of shares in the company, with the filing showing 243,823 shares remaining in his possession. These transactions were carried out under a Rule 10b5-1 trading plan, which was established on December 27, 2023. This plan allows company insiders to set up a predetermined schedule for buying and selling shares to avoid accusations of insider trading.
In addition to the shares sold, the filing also mentions holdings in irrevocable trusts for the benefit of Young’s children, with his spouse acting as trustee. These trusts hold 20,000 shares each. However, Young has disclaimed beneficial ownership of these securities, and this report is not an acknowledgment of beneficial ownership for the purposes of Section 16 or any other legal context.
Investors and followers of Akero Therapeutics will continue to monitor insider transactions as they often provide insights into the company’s performance and the confidence level of its top executives.
In other recent news, Akero Therapeutics has seen significant developments. The biopharmaceutical company announced the approval of a key amendment to its corporate bylaws, aimed at limiting the liability of certain officers. This was ratified at the recent annual stockholders meeting, which also saw the election of three Class II directors and the approval of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2024.
Akero Therapeutics has also been a focus of several analyst firms. Canaccord Genuity maintained a Buy rating on Akero’s stock, citing the potential of the drug candidate, Efruxifermin. Similarly, Wolfe Research initiated coverage on Akero with an Outperform rating, based on the potential market introduction of competing NASH treatments and Akero’s potential to reach approximately $3 billion in peak revenue by 2040.
However, both Evercore ISI and Canaccord Genuity adjusted their price targets for Akero. Evercore reduced its target to $38.00, while Canaccord adjusted its target to $56.00, based on reassessments of the company’s financial model and updated projections for fiscal year 2024 operating expenses.
In addition, Akero announced the appointment of Scott Gangloff as Chief Technology Officer, underlining the company’s dedication to advancing Efruxifermin through Phase 3 clinical trials. Lastly, BofA Securities reinstated coverage on Akero Therapeutics, assigning a Neutral rating, noting challenges ahead including concerns regarding the drug’s safety and an intensifying competitive landscape in the NASH treatment market.
InvestingPro Insights
Amid the recent news of Jonathan Young’s share sale, Akero Therapeutics, Inc. (NASDAQ:AKRO) presents a mixed financial outlook according to InvestingPro data. The company’s market capitalization stands at $1.74 billion, reflecting its scale within the biopharmaceutical industry. However, investors should be aware of the company’s negative P/E ratio, which currently stands at -7.74, and has further declined to -9.71 when adjusted for the last twelve months as of Q1 2024. This indicates that the company is not generating profits relative to its share price, a common occurrence for many biotech firms that are in the development phase.
Despite this, Akero Therapeutics has demonstrated resilience in its stock performance with a significant 14.77% return over the last month and an even more impressive 28.03% return over the last three months. This could suggest a growing investor optimism about the company’s future prospects or its underlying asset values. However, it’s important to note that the company does not pay dividends, which may influence the investment strategy for income-focused investors.
Providing further context to these metrics, two InvestingPro Tips highlight key considerations: Akero Therapeutics holds more cash than debt on its balance sheet, which is a positive sign of financial stability, and the company has liquid assets that exceed short-term obligations, indicating good short-term financial health. On the other hand, analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio data.
For investors seeking a deeper dive into Akero Therapeutics’ financial health and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/AKRO, offering a comprehensive analysis that could guide investment decisions.
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