In a recent transaction, Timothy Rolph, the Chief Scientific Officer of Akero Therapeutics, Inc. (NASDAQ:AKRO), sold 2,380 shares of the company's common stock. The total value of the shares sold amounted to approximately $53,885, reflecting a weighted-average price of $22.641 per share.
The sale took place on June 11, 2024, and was part of a "sell-to-cover" policy adopted by Akero Therapeutics to satisfy tax withholding obligations related to the vesting of restricted stock units. According to the filing, the shares were required to be sold by Rolph to cover these tax obligations. This type of transaction is automatic and not at the discretion of the reporting person.
The shares sold by Rolph were transacted in multiple batches, with prices ranging from $22.640 to $22.760. Following the sale, Rolph still owns a substantial amount of Akero Therapeutics stock, with 180,178 shares remaining in his possession.
Investors and security holders interested in the specific details of the sale prices can request full information from the reporting person, who has agreed to provide details regarding the number of shares sold at each price within the stated range.
The sale was disclosed in a legal filing with the Securities and Exchange Commission, which includes the signature of Jonathan Young, Attorney-in-Fact, dated June 13, 2024.
In other recent news, Akero Therapeutics has seen significant changes in its corporate structure and operations. Following its annual stockholders meeting, the company approved a key amendment to its bylaws, aligning with recent changes in Delaware law. The amendment aims to limit the liability of certain officers and provides specified officers with protection from certain types of lawsuits.
In addition to the bylaw amendment, the annual stockholders meeting resulted in 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.
Moreover, Akero Therapeutics has been a topic of discussion among several analyst firms. Canaccord Genuity maintained a Buy rating on Akero's stock, citing the potential of the drug candidate, Efruxifermin. Similarly, Wolfe Research initiated coverage on Akero with an Outperform rating, based on the potential market introduction of competing NASH treatments.
On the other hand, 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.
Lastly, Akero Therapeutics announced the appointment of Scott Gangloff as Chief Technology Officer, demonstrating the company's commitment to advancing Efruxifermin through Phase 3 clinical trials. These are the recent developments concerning Akero Therapeutics.
InvestingPro Insights
As Akero Therapeutics Inc . (NASDAQ:AKRO) navigates through its financial year, recent data from InvestingPro provides valuable insights into the company's performance and market position. With a market capitalization of $1.71 billion and a negative P/E ratio of -9.5 for the last twelve months as of Q1 2024, Akero Therapeutics appears to be facing challenges in profitability. This is further underscored by an EBITDA decline of -73.2% during the same period.
Despite the negative earnings metrics, the company's stock has experienced a significant return over the past week, with a price total return of 13.88%. This momentum extends over the last month, presenting a price total return of 17.8%. One of the InvestingPro Tips for Akero Therapeutics indicates that the stock price often moves in the opposite direction of the market, which could explain these returns amidst broader market trends.
Moreover, another InvestingPro Tip points out that the company holds more cash than debt on its balance sheet, suggesting a strong liquidity position. This is an important consideration for investors, as it may provide the company with a buffer against short-term market fluctuations and potential investment opportunities.
For those considering an investment in Akero Therapeutics, there are additional InvestingPro Tips available that could further inform their decision. Currently, there are 10 more tips listed on InvestingPro, accessible at https://www.investing.com/pro/AKRO. For a deeper dive into these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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