In a recent transaction, William Richard White, the Chief Financial Officer of Akero Therapeutics, Inc. (NASDAQ:AKRO), sold a significant amount of company stock, totaling over $2.6 million. The sales were conducted at prices ranging from $26.412 to $27.211 per share.
The transactions, which took place on August 26 and 27, involved the sale of 75,162 shares of common stock for a total of $2,657,249. These sales were executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell company stocks. The plan had been adopted by White earlier in the year on March 13, 2024.
In addition to the sales, White also exercised options to acquire a total of 75,162 shares of Akero Therapeutics common stock at prices between $7.009 and $21.09, amounting to $1,584,089. These transactions indicate that White is capitalizing on vested options, which are exercisable as per the company filings.
The stock options were exercised over the same two days when the sales occurred, and the prices at which these options were exercised were significantly lower than the sales prices, reflecting a common strategy among executives to exercise and sell when the stock's market price is higher than the exercise price.
After the reported transactions, White's ownership in the company has decreased, but he still holds a substantial number of shares, which aligns his interests with those of the shareholders.
Investors and followers of Akero Therapeutics will be keeping a close eye on insider transactions like these, as they can provide valuable insights into the company's performance and the confidence that executives have in the firm's future prospects.
In other recent news, Akero Therapeutics has seen significant developments. The company recently ratified a key amendment to its corporate bylaws, aimed at limiting the liability of certain officers. This move aligns with changes in Delaware law, where Akero is incorporated. In addition, the company's annual stockholders meeting resulted in the election of three Class II directors and the approval of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Akero Therapeutics has been a focus of several analyst firms. Canaccord Genuity maintained a Buy rating on the company's stock, noting 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. 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.
Recently, Akero Therapeutics announced the appointment of Scott Gangloff as Chief Technology Officer, signaling the company's commitment to advancing Efruxifermin through Phase 3 clinical trials. BofA Securities reinstated coverage on Akero Therapeutics, assigning a Neutral rating, noting challenges ahead including concerns regarding the drug's safety and an intensifying competitive landscape in the NASH treatment market. These are the recent developments concerning Akero Therapeutics.
InvestingPro Insights
Following the news of CFO William Richard White's stock sales in Akero Therapeutics, Inc. (NASDAQ:AKRO), current and potential investors may be seeking deeper financial insights into the company. According to InvestingPro data, Akero Therapeutics has a market capitalization of approximately $1.88 billion and a negative P/E ratio of -7.96, which suggests that the company is not currently profitable. This aligns with one of the InvestingPro Tips indicating that analysts do not anticipate the company will be profitable this year. Additionally, the company's price to book ratio as of the last twelve months stands at 2.35.
Despite the recent sale by the CFO, Akero Therapeutics holds more cash than debt on its balance sheet, which is a positive sign of financial stability, as per another InvestingPro Tip. This is a critical factor for investors considering the company's ability to fund operations and research development without relying heavily on external financing.
It's also worth noting that the company has seen a strong return over the last three months, with a price total return of 42.71%. This could be indicative of the market's reaction to the company's strategic moves or investor sentiment toward its potential. For more detailed analysis and additional tips, investors can access several more InvestingPro Tips for Akero Therapeutics at https://www.investing.com/pro/AKRO.
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