Akero Therapeutics, Inc. (NASDAQ:AKRO) Chief Operating Officer Jonathan Young recently sold shares of the company stock, according to a new SEC filing. The transaction, which took place on June 3, 2024, involved the sale of 5,000 shares at an average price of $19.288 per share, totaling approximately $96,440.
The shares were sold in multiple transactions with prices ranging from $18.955 to $19.730. This sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted on December 27, 2023. Rule 10b5-1 plans allow company insiders to set up a predetermined plan to sell company stocks at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
Following the sale, Jonathan Young still holds a significant number of shares in the company. The SEC filing revealed that Young now owns 253,306 shares directly. Additionally, there are holdings in irrevocable trusts for the benefit of Young's children, amounting to 60,000 shares, which are not directly owned by him. His spouse acts as the trustee for these trusts. Young has disclaimed beneficial ownership of these securities, and this report does not admit him as the beneficial owner for Section 16 or any other purpose.
Investors and the market often look closely at insider transactions as they can provide insights into the company's performance and the confidence that executives have in the company's future. Akero Therapeutics, a pharmaceutical company specializing in the development of treatments for serious metabolic diseases, is followed by investors interested in the healthcare and biotechnology sectors.
The details provided in the SEC filing give a clear picture of the recent transactions by Akero Therapeutics' COO, ensuring transparency and adherence to regulatory requirements.
In other recent news, Akero Therapeutics has been the subject of several noteworthy developments. Evercore ISI adjusted its price target for Akero Therapeutics from $50.00 to $38.00, maintaining an Outperform rating, while Canaccord Genuity reduced its 12-month price target from $59.00 to $56.00 but retained a Buy rating. BofA Securities reinstated coverage on the company, assigning a Neutral rating with a price target of $30.00.
These adjustments come in light of Akero's recent capital raise of $367 million, which has boosted the company's cash balance to over $900 million, expected to support the phase 3 MASH program's expenses. Akero is currently progressing with its phase 3 studies for its lead candidate, efruxifermin, for NASH patients with stage F2 to F3 fibrosis.
Akero Therapeutics has also recently appointed Scott Gangloff as its new Chief Technology Officer, a significant step as the company advances efruxifermin through Phase 3 clinical trials. The company has also reported positive results from a study indicating that efruxifermin shows promise in treating liver issues in patients with Type 2 diabetes when combined with GLP-1 receptor agonist therapy.
These are among the recent developments for Akero Therapeutics, reflecting the company's active engagement in research, development, and expansion.
InvestingPro Insights
Akero Therapeutics, Inc. (NASDAQ:AKRO) has been navigating a challenging market environment, as reflected in the recent insider sale by COO Jonathan Young. In the light of this transaction, it's worth considering the company's financial health and market performance for a comprehensive understanding of its current position.
InvestingPro data indicates that Akero Therapeutics holds a market capitalization of $1.45 billion, with a notably negative P/E ratio over the last twelve months as of Q1 2024, standing at -8.02. This suggests that the company has been posting losses relative to its share price. Additionally, the company's stock has experienced significant volatility, with a 3-month price total return of -37.02%, which could be a sign of investor uncertainty about the future of the company.
One of the InvestingPro Tips highlights that Akro Therapeutics holds more cash than debt on its balance sheet, which can be a sign of financial stability and potential resilience in tough market conditions. Furthermore, the company's liquid assets exceed its short-term obligations, which may provide some comfort to investors concerned about the company's ability to meet its immediate financial liabilities.
Nevertheless, analysts are cautious about the company's profitability, with expectations that net income may drop this year and a consensus that the company will not be profitable within the year. This is further supported by the company's weak gross profit margins, as noted in another InvestingPro Tip.
For investors looking to delve deeper into Akero Therapeutics' financials and market performance, additional InvestingPro Tips are available at https://www.investing.com/pro/AKRO. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional tips listed in InvestingPro that could provide further insights into Akero Therapeutics' prospects and investment potential.
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