Akero Therapeutics, Inc. (NASDAQ:AKRO) Chief Financial Officer, William Richard White, has recently engaged in significant trading activity involving the company's stock, according to the latest filings with the Securities and Exchange Commission. The transactions, which took place over three consecutive days, involved both the acquisition and disposal of shares.
White exercised options to buy a total of 183,855 shares of Akero Therapeutics common stock at a price of $7.009 each, amounting to approximately $1.29 million. Following these acquisitions, the CFO sold a total of 139,855 shares at prices ranging from $26.71 to $28.01, resulting in proceeds of over $4.3 million.
The sales were executed in multiple transactions, with the highest volume sale of 79,446 shares occurring at a weighted-average price of $27.19. Another significant sale included 59,637 shares at a weighted-average price of $26.71. The remaining transactions varied within the price range, with the lowest reported sale of 1,791 shares at an even $27.00.
It should be noted that these transactions were executed under a Rule 10b5-1 trading plan, a mechanism that allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This trading plan was established on March 13, 2024.
Investors often monitor insider trading activities such as these for insights into how executives perceive the company's future prospects. However, it is important to consider that trading decisions by executives can be influenced by a variety of factors, including personal financial planning and diversification strategies.
Akero Therapeutics, based in South San Francisco, California, operates in the pharmaceutical industry, focusing on developing treatments for serious metabolic diseases. As of the latest transactions, CFO William Richard White's ownership in the company stands at 41,791 shares of common stock.
In other recent news, Akero Therapeutics has made significant developments, including the approval of a key amendment to its corporate bylaws and the election of three Class II directors. The company has also announced the appointment of Scott Gangloff as Chief Technology Officer. These updates come alongside the ratification of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
Akero has been a topic of discussion among several analyst firms. Canaccord Genuity maintained a Buy rating on the company'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. On the other hand, BofA Securities reinstated coverage on Akero Therapeutics, assigning a Neutral rating.
The analysts' attention also extends to Akero's financial outlook. Evercore ISI and Canaccord Genuity both adjusted their price targets for Akero, driven by reassessments of the company's financial model and updated projections for fiscal year 2024 operating expenses. These are the recent developments concerning Akero Therapeutics.
InvestingPro Insights
The recent insider trading by Akero Therapeutics, Inc. (NASDAQ:AKRO) CFO William Richard White has highlighted the company's financial activities, and when we turn to InvestingPro for a deeper analysis, we see a mixed financial picture. The company holds a market capitalization of $1.97 billion, despite having negative earnings per share (EPS) for the last twelve months as of Q1 2024, standing at -$3.22. This is reflected in the negative price-to-earnings (P/E) ratios, with the standard P/E at -8.8 and the adjusted P/E ratio at -10.35.
Yet, on a more positive note, Akero Therapeutics has seen strong returns over the last three months, with a total price return of 49.6%, and a noteworthy price uptick over the last six months, at 28.38%. This performance suggests a potential bullish trend in the stock's recent trading history, which could be of interest to investors looking for growth opportunities. Additionally, the company's liquid assets exceed its short-term obligations, indicating a solid liquidity position.
InvestingPro Tips reveal that while Akro Therapeutics does not pay dividends to shareholders, the company holds more cash than debt on its balance sheet, providing some financial stability. However, analysts have concerns, noting weak gross profit margins and expectations of net income dropping this year. They also do not anticipate the company will be profitable this year. For investors seeking a comprehensive understanding of Akero Therapeutics' financial health and future prospects, InvestingPro offers additional insights, including PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 additional InvestingPro Tips available, which could guide investment decisions regarding Akero Therapeutics.
For more detailed analysis and to explore these tips further, visit https://www.investing.com/pro/AKRO.
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