Akero Therapeutics, Inc. (NASDAQ:AKRO) Chief Financial Officer, William Richard White, has sold a significant number of shares in the company, according to a recent SEC filing. White sold a total of 34,811 shares of common stock on July 16, 2024, at prices ranging from $28.000 to $28.125, with a weighted-average price of $28.045, netting a total of approximately $976,274 from the sale.
The transactions were carried out under a Rule 10b5-1 trading plan, which was previously established on March 13, 2024. Such plans allow company insiders to set up predetermined trading arrangements for selling stocks at a later date, providing a defense against potential accusations of insider trading.
While the CFO sold shares, it's also noted that on the same day, White acquired 29,803 shares of Akero Therapeutics' common stock at a price of $7.009 each, amounting to a total transaction value of $208,889. These shares were acquired through the exercise of options that are vested and currently exercisable, as indicated in the provided footnotes of the SEC filing.
Following these transactions, the CFO's direct ownership in the company has been adjusted, with the latest SEC filing reflecting the updated amount of shares held.
Investors often monitor insider buying and selling as it can provide insights into a company's internal perspective and future expectations. Akero Therapeutics, a biopharmaceutical company focused on developing treatments for serious metabolic diseases, has not provided any official statement regarding the transactions carried out by CFO William Richard White.
For those interested in the detailed numbers and further transaction specifics, the full information is available through the SEC filing, which includes comprehensive data on the exact number of shares sold at each price within the reported range.
In other recent news, Akero Therapeutics has seen significant developments. The company approved a crucial amendment to its corporate bylaws, intended to align with recent changes in Delaware law, providing certain officers with protection from specific types of lawsuits. The amendment was ratified at the 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.
The biopharmaceutical company has also been the focus of several analyst firms recently. Canaccord Genuity maintained a Buy rating on Akero's stock due to the potential of the drug candidate, Efruxifermin. The firm anticipates significant data from the Phase IIb SYMMETRY study in the first half of 2025, which could lead to a positive outcome on fibrosis treatment. 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.
Additionally, Evercore ISI and Canaccord Genuity both adjusted their price targets for Akero. These adjustments were driven by reassessments of the company's financial model and updated projections for fiscal year 2024 operating expenses. Furthermore, Akero Therapeutics announced the appointment of Scott Gangloff as Chief Technology Officer, emphasizing the company's commitment to advancing Efruxifermin through Phase 3 clinical trials. These are the recent developments concerning Akero Therapeutics.
InvestingPro Insights
As investors digest the news of Akero Therapeutics, Inc. (NASDAQ:AKRO) CFO William Richard White's recent stock transactions, it's important to consider the company's financial health and market performance. InvestingPro data shows that Akero Therapeutics currently holds a market capitalization of $1.88 billion. Despite the company's significant market presence, the adjusted price-to-earnings (P/E) ratio as of the last twelve months leading into Q1 2024 stands at -10.45, indicating that investors are anticipating future earnings growth to justify the company's market valuation.
Analyzing recent stock performance, Akero Therapeutics has experienced a strong return over the last three months, with a 30.44% increase. This positive trend is also reflected in the 1-month and 6-month price total returns, at 22.2% and 23.6%, respectively. However, the 1-year price total return shows a substantial decline of -39.46%, highlighting the stock's volatility and the challenges faced over the longer term.
InvestingPro Tips for Akero Therapeutics suggest that while the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability, analysts are not optimistic about profitability in the near term. Furthermore, the stock's Relative Strength Index (RSI) indicates that it is currently in overbought territory, which could mean a potential price correction ahead.
For investors looking for a deeper dive into Akero Therapeutics' financials and market performance, more InvestingPro Tips are available. There are a total of 11 additional tips that can be explored at https://www.investing.com/pro/AKRO. To access this valuable information, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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