SAN DIEGO—Boxer Capital Management, LLC, a significant shareholder in Tango Therapeutics, Inc. (NASDAQ:TNGX), has sold a substantial portion of its holdings in the company. According to a recent SEC filing, Boxer Capital sold a total of 875,000 shares of Tango Therapeutics' common stock over two days.
The sales, executed on October 21 and October 22, were conducted at weighted average prices of $7.05 and $6.78 per share, respectively. The transactions amounted to a total value of approximately $6.1 million.
Following these sales, Boxer Capital, managed by Aaron I. Davis, retains ownership of 7,323,642 shares directly, with additional shares held indirectly through other entities. Davis, who has voting and dispositive power over the shares owned by Boxer Capital, disclaims beneficial ownership except for his pecuniary interest.
The sales reflect Boxer Capital's ongoing management of its investment portfolio, while it continues to hold a significant stake in Tango Therapeutics.
In other recent news, Tango Therapeutics has seen significant developments in its drug pipeline. Leerink Partners maintained an Outperform rating for Tango Therapeutics, emphasizing the potential of its PRMT5 inhibitors, TNG908 and TNG462. Leerink anticipates significant updates for these drugs, which could set TNG462 apart within the market opportunity of MTAP-deleted cancers. Tango Therapeutics has halted the development of its key drug candidate, TNG348, due to observed liver function abnormalities in trial participants. However, the company's cash runway is projected to last into 2027. Piper Sandler also expressed optimism for Tango Therapeutics' PRMT5 inhibitors, TNG462 and TNG908. Meanwhile, H.C. Wainwright and Jefferies have maintained positive ratings on the company's shares, with price targets of $13.00 and $19.00 respectively. These recent developments reflect Tango Therapeutics' commitment to advancing its portfolio and ensuring its clinical programs stay on track.
InvestingPro Insights
The recent stock sale by Boxer Capital Management comes at a time when Tango Therapeutics (NASDAQ:TNGX) is facing some financial challenges, according to data from InvestingPro. The company's stock has taken a significant hit recently, with a 10.43% decline in the past week and a 15.84% drop over the last month. This downward trend aligns with Boxer Capital's decision to reduce its position.
InvestingPro Tips highlight that Tango Therapeutics is quickly burning through cash and is not expected to be profitable this year. This could explain why large shareholders like Boxer Capital might be reassessing their positions. The company's financial health is further underscored by its negative gross profit margin, which stands at -218.07% for the last twelve months as of Q2 2024.
Despite these challenges, it's worth noting that Tango Therapeutics holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion may provide some stability as the company navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Tango Therapeutics, providing a deeper understanding of the company's financial position and market performance.
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