Taysha Gene Therapies Faces Downgrade Amid Market Analysis
Taysha Gene Therapies (NASDAQ: TSHA) received a downgrade from Wall Street Zen, which shifted its rating from “hold” to “sell.” This change, noted in a research note issued on the morning of October 21, 2023, reflects a growing concern among analysts regarding the company’s stock performance.
Several financial institutions have recently offered their insights on Taysha Gene Therapies. Raymond James Financial initiated coverage with a “strong-buy” rating and set a target price of $13.00. Meanwhile, Citizens JMP raised their target from $6.00 to $8.00, designating the stock as “market outperform.” Needham & Company reaffirmed a “buy” rating while issuing a price target of $10.00, and Citigroup also maintained an “outperform” rating. In contrast, Weiss Ratings reiterated a “sell (e+)” rating on October 30, 2023.
Analysts’ opinions vary significantly; one has issued a “strong buy,” ten have rated it as a “buy,” and one has opted for a “sell.” According to MarketBeat, Taysha currently boasts a consensus rating of “moderate buy” with a target price averaging $9.70.
Recent Earnings and Financial Health
Taysha Gene Therapies announced its latest earnings results on November 4, 2023. The company reported an earnings per share (EPS) of (0.09), aligning with the consensus estimate. The company continues to face challenges, highlighted by a negative net margin of 1,144.97% and a return on equity of (67.26%).
Analysts project that Taysha Gene Therapies will report an EPS of (0.35) for the current year, indicating ongoing financial difficulties.
Insider Transactions and Institutional Holdings
In a notable insider transaction, Sukumar Nagendran sold 200,000 shares of Taysha on September 10, 2023, at an average price of $3.23, totaling approximately $646,000. Following this sale, Nagendran retains 1,006,439 shares, valued at around $3.25 million. This transaction represented a 16.58% reduction in ownership, as disclosed in a filing with the U.S. Securities and Exchange Commission.
Currently, corporate insiders hold 3.78% of the company’s stock. Institutional investors are also active, with Nuveen LLC acquiring a new stake worth $760,000 in the first quarter. Octagon Capital Advisors LP increased its holdings by 2.4%, bringing their total to 10.7 million shares valued at around $14.87 million. Other firms, including ADAR1 Capital Management LLC and Jefferies Financial Group Inc., have made significant investments, highlighting strong institutional interest in Taysha Gene Therapies.
Overall, approximately 77.70% of Taysha Gene Therapies’ stock is held by hedge funds and institutional investors, indicating robust market engagement despite the recent downgrade.
Company Overview
Taysha Gene Therapies focuses on developing and commercializing adeno-associated virus-based gene therapies targeting monogenic diseases affecting the central nervous system. The company is advancing several treatments, including TSHA-120 for giant axonal neuropathy and TSHA-102 for Rett syndrome, among others.
As Taysha navigates these recent challenges and opportunities, its ability to respond to market analyses and maintain investor confidence will be crucial in the coming months.
