Jonathan Young, the Chief Operating Officer of Akero Therapeutics, Inc. (NASDAQ:AKRO), has sold a total of $281,770 worth of company stock, according to a recent filing with the Securities and Exchange Commission. The transactions were conducted on October 1, 2024, under a prearranged 10b5-1 trading plan.
The SEC filing revealed that Young sold 10,000 shares of Akero Therapeutics' common stock at a weighted-average price of $28.177 per share. The sales took place in multiple transactions ranging from $27.72 to $28.67 per share. Following the sale, Young still owns 226,286 shares directly.
The filing also noted that Young has indirect ownership of an additional 60,000 shares of Akero Therapeutics' common stock, which are held in irrevocable trusts for the benefit of his children. Young's spouse serves as the trustee for these trusts. It is important to note that Young disclaims beneficial ownership of these securities, and this report does not constitute an admission of beneficial ownership for Section 16 or any other purpose.
Investors and followers of Akero Therapeutics will be keeping an eye on insider transactions, as they often look to them as signals of confidence in the company's future prospects. The detailed information regarding the number of shares sold at each price within the reported range is available upon request from the issuer, any security holder of the issuer, or the SEC staff.
As of the last filing, Akero Therapeutics continues to operate in the pharmaceutical preparations industry, with its business address in South San Francisco, California.
In other recent news, Akero Therapeutics continues to advance in its Phase 3 trial for a treatment aimed at MASH patients with compensated cirrhosis, named SYNCHRONY Outcomes. This development follows the announcement that the first patient has been dosed in the study. H.C. Wainwright has maintained a Buy rating for the company, reflecting a positive outlook on Akero's therapeutic developments.
The SYNCHRONY Outcomes trial, a randomized, placebo-controlled Phase 3 study, plans to enroll approximately 1,150 F4 MASH patients to assess fibrosis regression after a 96-week treatment period. The initiation of the SYNCHRONY studies represents a significant step for Akero, as it now has all three Phase 3 trials of EFX underway.
Investors are keenly awaiting the Week 96 data release from the ongoing Phase 2b SYMMETRY study, expected in the first quarter of 2025. This data will provide insights into the long-term effects of EFX on F4 MASH patients and is considered a critical near-term milestone for Akero and its EFX treatment.
InvestingPro Insights
To provide additional context to Jonathan Young's stock sale, let's examine some key financial metrics and insights from InvestingPro for Akero Therapeutics (NASDAQ:AKRO).
As of the latest data, Akero Therapeutics has a market capitalization of $1.93 billion. The company's stock has shown strong performance over the past three months, with a price total return of 26.08%. This recent uptrend might explain the timing of the insider sale, as executives often sell shares when prices are favorable.
InvestingPro Tips highlight that Akero holds more cash than debt on its balance sheet, which is a positive sign for the company's financial health. This strong cash position aligns with another tip indicating that liquid assets exceed short-term obligations, suggesting the company has a solid financial foundation despite being in the development stage of its pharmaceuticals.
It's worth noting that Akero is not currently profitable, with a negative P/E ratio of -9.26 for the last twelve months as of Q2 2024. This is not unusual for biotech companies in the drug development phase. An InvestingPro Tip points out that analysts do not anticipate the company will be profitable this year, which is consistent with the nature of pharmaceutical companies investing heavily in research and development.
Interestingly, three analysts have revised their earnings upwards for the upcoming period, which could be seen as a positive signal about the company's prospects. However, investors should be aware that net income is expected to drop this year, according to another InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Akero Therapeutics, providing a more comprehensive view of the company's financial situation and market position.
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