Akero Therapeutics, Inc. (NASDAQ:AKRO) Chief Operating Officer Jonathan Young recently sold shares of the company stock, according to a new SEC filing. On July 1, Young sold 5,000 shares at an average price of $23.40, totaling approximately $117,020. The transactions were carried out under a pre-arranged trading plan.
The sale was executed in multiple transactions with prices ranging from $23.185 to $23.680. This move adjusted Young's direct holdings in the company to 246,854 shares following the sale. It's noted that the trading plan under which these shares were sold was established on December 27, 2023.
In addition to the sale, the filing also included an acquisition of 1,064 shares of common stock under the company's 2019 Employee Stock Purchase Plan. The shares were acquired at a price of $19.941, amounting to a total of $21,217. This transaction, which took place on June 28, was exempt under specific SEC rules and reflects a purchase price at 85% of the closing price on the date of acquisition.
Furthermore, the report disclosed indirect holdings by Young in the form of irrevocable trusts for the benefit of his children, amounting to 60,000 shares. Young disclaims beneficial ownership of these shares, and this report does not constitute an admission of beneficial ownership for any legal purpose.
Investors and followers of Akero Therapeutics will continue to monitor insider transactions as they can provide valuable insights into the company's performance and management's perspective on the stock's value.
In other recent news, Akero Therapeutics has seen significant developments. The company has announced the approval of an amendment to its corporate bylaws, which aims to limit the liability of certain officers. This amendment aligns with recent changes in Delaware law, where the company is incorporated. The annual stockholders meeting 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.
In terms of analyst attention, Canaccord Genuity maintained a Buy rating on Akero's stock, citing the potential of the drug candidate, Efruxifermin. 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. 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.
The company also announced the appointment of Scott Gangloff as Chief Technology Officer, signaling its commitment to advancing Efruxifermin through Phase 3 clinical trials. Finally, BofA Securities reinstated coverage on Akero Therapeutics, assigning a Neutral rating and noting challenges ahead including concerns regarding the drug's safety and an intensifying competitive landscape in the NASH treatment market.
InvestingPro Insights
Akero Therapeutics, Inc. (NASDAQ:AKRO) has been navigating a complex market environment, as reflected in recent insider transactions. With a market capitalization of $1.54 billion, the company's financials and stock performance are closely watched by investors seeking to understand the underlying value and future prospects of Akro Therapeutics.
InvestingPro data reveals a challenging picture with a negative P/E ratio over the last twelve months as of Q1 2024, standing at -8.63, indicating that the company has been unprofitable during this period. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the company's EBITDA experienced a significant contraction, with a growth rate of -73.2% during the same timeframe, underscoring operational difficulties.
However, there are positive aspects to consider as well. Akero Therapeutics holds more cash than debt on its balance sheet, a sign of financial stability that could provide resilience in uncertain times. Additionally, the company's liquid assets exceed its short-term obligations, which may offer some assurance to investors concerned about the company's ability to meet its immediate financial commitments.
InvestingPro Tips suggest that while the stock price often moves in the opposite direction of the market, it has shown a strong return over the last month with an 18.92% increase. This could indicate a divergence between market sentiment and the company's stock performance, a factor that savvy investors may wish to explore further.
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