There is no way Terns Pharmaceuticals Inc. (TERN) can keep these numbers up

Terns Pharmaceuticals Inc. (NASDAQ: TERN) stock jumped 25.31% on Friday to $3.02 against a previous-day closing price of $2.41. With 5.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.16 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $3.6000 whereas the lowest price it dropped to was $2.4600. The 52-week range on TERN shows that it touched its highest point at $13.77 and its lowest point at $1.45 during that stretch. It currently has a 1-year price target of $4.50.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TERN was up-trending over the past week, with a rise of 39.17%, but this was up by 17.97% over a month. Three-month performance surged to 93.59% while six-month performance fell -22.16%. The stock lost -70.91% in the past year, while it has lost -57.28% so far this year. A look at the trailing 12-month EPS for TERN yields -2.13 with Next year EPS estimates of -2.19. For the next quarter, that number is -0.63. This implies an EPS growth rate of -71.00% for this year and 2.90% for next year.

Float and Shares Shorts:

At present, 25.30 million TERN shares are outstanding with a float of 23.70 million shares on hand for trading. On Jul 14, 2022, short shares totaled 73760.0, which was 0.29% higher than short shares on Jun 14, 2022. In addition to Mr. Senthil Vel Sundaram as the firm’s CEO & Director, Dr. Erin Quirk M.D. serves as its Pres & Head of R&D.

Institutional Ownership:

Through their ownership of 93.04% of TERN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.05% of TERN, in contrast to 32.78% held by mutual funds. Shares owned by individuals account for 0.09%. As the largest shareholder in TERN with 9.28% of the stake, Deerfield Management Company LP holds 2,345,959 shares worth 2,345,959. A second-largest stockholder of TERN, BML Capital Management LLC, holds 1,764,274 shares, controlling over 6.98% of the firm’s shares. Suvretta Capital Management LLC is the third largest shareholder in TERN, holding 1,238,800 shares or 4.90% stake. With a 0.98% stake in TERN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 246,704 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.41% of TERN stock, is the second-largest Mutual Fund holder. It holds 103,931 shares valued at 0.22 million. iShares Biotechnology ETF holds 0.41% of the stake in TERN, owning 102,323 shares worth 0.22 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TERN since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TERN analysts setting a high price target of $5.00 and a low target of $4.00, the average target price over the next 12 months is $4.50. Based on these targets, TERN could surge 65.56% to reach the target high and rise by 32.45% to reach the target low. Reaching the average price target will result in a growth of 49.01% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TERN will report FY 2022 earnings on 03/03/2023. Analysts have provided yearly estimates in a range of -$2.23 being high and -$2.50 being low. For TERN, this leads to a yearly average estimate of -$2.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Terns Pharmaceuticals Inc. surprised analysts by $0.04 when it reported -$0.55 EPS against a consensus estimate of -$0.59. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is -$0.56 and the low estimate is -$0.70. The average estimate for the next quarter is thus -$0.63.

Summary of Insider Activity:

Insiders traded TERN stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 22,968 shares were bought while 0 shares were sold. The number of buy transactions has increased to 3 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 22,968 while 0 shares were sold.

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