Akero therapeutics CFO sells shares worth over $64,000 By Investing.com

In a recent transaction, Akero Therapeutics, Inc. (NASDAQ:) Chief Financial Officer William Richard White sold 2,831 shares of the company’s common stock, resulting in a total sale value of over $64,000. This transaction took place on June 11, as indicated in the latest SEC filings.

The shares were sold at an average weighted price of $22.64, with individual sales occurring within a price range of $22.50 to $22.76. It is important to note that the sale was mandated to cover tax withholding obligations related to the vesting of restricted stock units. Akero Therapeutics has implemented a “sell-to-cover” policy to manage tax withholdings for its employees, which necessitated this automatic sale, removing any discretion from the reporting person in the timing or pricing of the transaction.

Following the sale, CFO William Richard White now directly owns 46,799 shares in the company. The details of the transactions, including the specific number of shares sold at varying prices within the reported range, are available upon request from the issuer or the SEC.

Investors and followers of Akero Therapeutics may consider this transaction as part of their overall assessment of the company’s stock performance and insider activity. Akero Therapeutics, based in South San Francisco, California, operates within the pharmaceutical preparations industry, focusing on innovative treatments in the life sciences sector.

In other recent news, biopharmaceutical company Akero Therapeutics has seen significant developments. The firm has approved a crucial amendment to its corporate bylaws, designed to limit the liability of certain officers. The amendment aligns with recent changes in Delaware law, where Akero Therapeutics is incorporated. Additionally, the company’s 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.

Akero Therapeutics has also been the focus of several analyst firms. Canaccord Genuity maintained a Buy rating on Akero’s stock, highlighting 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. Both Evercore ISI and Canaccord Genuity adjusted their price targets for Akero, driven by reassessments of the company’s financial model and updated projections for fiscal year 2024 operating expenses.

In other 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. Lastly, 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

As Akero Therapeutics, Inc. (NASDAQ:AKRO) navigates the pharmaceutical preparations industry with its focus on innovative treatments, recent market data and analysis provide a deeper look into the company’s financial performance and stock behavior. According to InvestingPro, Akero Therapeutics holds a market capitalization of approximately $1.71 billion, reflecting the company’s presence and valuation in the market.

An interesting facet of Akero’s financial standing is that despite reporting negative earnings, with a last twelve months (LTM) as of Q1 2024 P/E Ratio of -9.5, the company maintains a PEG Ratio of 0.45 during the same period. This indicates potential for future earnings growth relative to its share price, suggesting that investors may be expecting an improvement in the company’s earnings prospects.

InvestingPro Tips highlight that Akero Therapeutics has a stronger cash position than debt on its balance sheet, which could provide the company with financial flexibility in its operations and investment strategies. Additionally, a noteworthy InvestingPro Tip points out that the company’s stock price often moves in the opposite direction of the market, which could be of interest to investors seeking non-correlated assets in their portfolios.

For those interested in further analysis and tips, there are additional insights available on InvestingPro, including a total of 11 InvestingPro Tips for Akero Therapeutics. To access these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

Investors may also note that the stock has experienced significant returns over the last week with a 15.42% price total return, paired with a strong 19.4% return over the last month. This volatility could be an opportunity for traders looking for short-term gains, while long-term investors might be more cautious given the company’s expected net income drop this year and the analysts’ anticipation that the company will not be profitable within the same timeframe.

With the next earnings date set for August 13, 2024, shareholders and potential investors should keep a close eye on Akero’s performance and strategic direction, as these factors will likely have a significant impact on the company’s stock value and overall market sentiment.

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