Andrew Cheng, the President and CEO of Akero Therapeutics (NASDAQ:AKRO), recently executed a series of stock transactions, as outlined in a recent SEC filing. On October 16th, 17th, and 18th, Cheng sold a total of 91,634 shares of Akero Therapeutics' common stock, generating approximately $2.88 million. The shares were sold at prices ranging from $31.118 to $32.12 per share.
The transactions were conducted under a pre-established Rule 10b5-1 trading plan, which Cheng adopted on May 25, 2023. In addition to the sales, Cheng also exercised options to acquire a total of 91,634 shares at a price of $21.1 per share.
Following these transactions, Cheng holds 605,417 shares of Akero Therapeutics directly. These filings provide insight into the trading activities of a key executive at the company, offering investors valuable information about insider actions.
In other recent news, Akero Therapeutics continues to make significant strides in its Phase 3 trial for a treatment aimed at MASH patients with compensated cirrhosis, known as the SYNCHRONY Outcomes trial. The trial is evaluating the efficacy of efruxifermin (EFX) in patients with fibrosis stage 4 (F4). The first patient was successfully dosed in this study on September 9.
The SYNCHRONY Outcomes trial, which is a randomized, placebo-controlled Phase 3 trial, plans to enroll approximately 1,150 F4 MASH patients. The trial's primary endpoint is to assess fibrosis regression without worsening of MASH after a 96-week treatment period. Following this phase, the trial will continue to monitor patients to evaluate primary outcomes related to mortality and liver-related clinical events.
Investors are eagerly 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 crucial near-term milestone for Akero and its EFX treatment. In light of these developments, H.C. Wainwright has maintained a Buy rating and a $50.00 stock price target for Akero Therapeutics.
InvestingPro Insights
To provide additional context to Andrew Cheng's recent stock transactions, it's worth examining 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 $2.17 billion. The company's stock has shown remarkable performance, with a one-year price total return of 150.84% as of the most recent quarter. This strong return aligns with an InvestingPro Tip highlighting the company's "high return over the last year."
Despite the positive stock performance, it's important to note that Akero Therapeutics is not currently profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This is further supported by the negative operating income of -$234.18 million for the last twelve months as of Q2 2024.
However, the company's financial position shows some strengths. An InvestingPro Tip reveals that Akero Therapeutics "holds more cash than debt on its balance sheet," which could provide financial flexibility as the company continues to develop its pipeline. Additionally, another tip notes that "liquid assets exceed short term obligations," suggesting a solid short-term financial position.
These insights offer a more comprehensive view of Akero Therapeutics' financial landscape, providing context for CEO Andrew Cheng's recent stock transactions. Investors seeking a deeper understanding of the company's prospects may find value in exploring the additional 8 tips available on InvestingPro.
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