Akero Therapeutics, Inc. (NASDAQ:AKRO) President and CEO Andrew Cheng recently sold shares in the company, yielding a total of $178,728. The transaction, which took place on June 11, involved the sale of 7,894 shares at an average price of $22.641, with individual sale prices ranging from $22.640 to $22.760.
The shares sold by Cheng were part of a "sell-to-cover" policy employed by Akero Therapeutics to manage tax withholding obligations due to the vesting of restricted stock units. According to the footnote in the SEC filing, these sales were automatic and were not made at the discretion of Cheng. This method is commonly used by companies to facilitate the automatic selling of shares to cover executives' tax liabilities upon the vesting of restricted stock.
Following the transaction, Cheng's direct ownership in Akero Therapeutics stands at 581,553 shares. The sale was promptly disclosed in a Form 4 filing with the Securities and Exchange Commission, as is required for insider transactions.
Investors often monitor insider sales as they may provide insights into executives’ perspectives on the company's current valuation and future prospects. However, it's important to note that sales like these, which are executed to cover tax obligations, may not necessarily reflect a lack of confidence in the company by the executive.
Akero Therapeutics, based in South San Francisco, California, is a biopharmaceutical company focused on developing treatments for serious metabolic diseases. The company's stock is publicly traded on the NASDAQ stock exchange under the ticker symbol AKRO.
In other recent news, Akero Therapeutics has made significant strides in its operations and has been the subject of several analyst discussions. The biopharmaceutical company recently held an annual stockholders meeting where a key amendment to its corporate bylaws was approved. This amendment, designed to limit the liability of certain officers, aligns with recent changes in Delaware law. Furthermore, three Class II directors were elected, and Deloitte & Touche LLP was approved as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
In the realm of analyst attention, Canaccord Genuity maintained a Buy rating on Akero's stock, citing the potential of the drug candidate, Efruxifermin. The firm anticipates significant data from the Phase IIb SYMMETRY study in the first half of 2025. 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. However, BofA Securities reinstated coverage on Akero Therapeutics with a Neutral rating, noting challenges ahead including concerns regarding the drug's safety and an intensifying competitive landscape in the NASH treatment market.
In the midst of these developments, 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
Amidst the news of Akero Therapeutics, Inc. (NASDAQ:AKRO) President and CEO Andrew Cheng's recent share sale, investors may benefit from additional context provided by InvestingPro data and insights. With a market capitalization of $1.71 billion and a notable return of 13.88% over the past week, Akero Therapeutics appears to be capturing investor interest. The company's stock price, which closed at $24.29, has experienced a strong return of 17.8% over the last month, although it has decreased by 57.3% over the past year, indicating significant volatility in its share price.
An InvestingPro Tip highlights that Akero Therapeutics has more cash than debt on its balance sheet, which may provide some financial stability for the company. However, the company's P/E ratio stands at -7.65, and the adjusted P/E ratio for the last twelve months as of Q1 2024 is -9.5, reflecting challenges in profitability. Additionally, the company's gross profit margins have been identified as weak, which could be a concern for investors looking at the company's ability to generate income relative to its revenue.
For investors seeking a deeper dive into Akero Therapeutics' financials and market performance, InvestingPro offers a range of additional tips. There are 10 more InvestingPro Tips available, which could provide further insights into the company's stock movements, profitability expectations, and analysts' outlooks. Interested readers can explore these tips by visiting the dedicated InvestingPro page for Akero Therapeutics at https://www.investing.com/pro/AKRO. Moreover, users can take advantage of an exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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