Zafgen (NASDAQ:ZFGN) Stock Rating Lowered by Zacks Investment Research

Zafgen (NASDAQ:ZFGN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Zacks.com reports.

According to Zacks, “Zafgen, Inc. is a biopharmaceutical company. The Company develops therapeutics for patients suffering from obesity and obesity-related disorders. Its lead product candidate includes Beloranib, an injection that is in Phase II clinical trials for the treatment of various indications comprising obesity and hyperphagia in Prader-Willi Syndrome patients, craniopharyngioma-associated obesity, and severe obesity in the general population. Zafgen, Inc. is headquartered in Cambridge, Massachusetts. “

A number of other equities research analysts have also commented on the stock. Cowen reaffirmed a “hold” rating on shares of Zafgen in a research note on Thursday, May 30th. Piper Jaffray Companies lowered shares of Mallinckrodt from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $39.00 to $9.00 in a research note on Thursday, May 30th. Wedbush reaffirmed a “buy” rating and issued a $6.00 price objective on shares of Zafgen in a research note on Thursday, May 30th. ValuEngine lowered shares of Zosano Pharma from a “buy” rating to a “hold” rating in a research note on Wednesday, May 1st. Finally, Roth Capital began coverage on shares of Zafgen in a research note on Friday, April 26th. They issued a “buy” rating and a $8.00 price objective on the stock. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $7.00.

Shares of NASDAQ ZFGN opened at $1.15 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 7.83 and a current ratio of 7.83. Zafgen has a 52-week low of $1.13 and a 52-week high of $12.35. The company has a 50 day simple moving average of $1.34. The firm has a market cap of $42.93 million, a PE ratio of -0.61 and a beta of -0.40.

Zafgen (NASDAQ:ZFGN) last announced its quarterly earnings results on Thursday, May 9th. The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.40) by $0.05. On average, analysts expect that Zafgen will post -1.4 EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Great Point Partners LLC boosted its stake in Zafgen by 6.1% during the fourth quarter. Great Point Partners LLC now owns 3,598,392 shares of the biopharmaceutical company’s stock worth $17,812,000 after acquiring an additional 207,007 shares in the last quarter. BlackRock Inc. boosted its stake in Zafgen by 22.4% during the fourth quarter. BlackRock Inc. now owns 2,596,716 shares of the biopharmaceutical company’s stock worth $12,853,000 after acquiring an additional 474,896 shares in the last quarter. 683 Capital Management LLC boosted its stake in Zafgen by 7.7% during the fourth quarter. 683 Capital Management LLC now owns 1,400,000 shares of the biopharmaceutical company’s stock worth $6,930,000 after acquiring an additional 100,000 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Zafgen by 2.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 904,194 shares of the biopharmaceutical company’s stock worth $4,476,000 after acquiring an additional 21,423 shares in the last quarter. Finally, Candriam Luxembourg S.C.A. boosted its stake in Zafgen by 8.7% during the fourth quarter. Candriam Luxembourg S.C.A. now owns 539,000 shares of the biopharmaceutical company’s stock worth $2,668,000 after acquiring an additional 43,000 shares in the last quarter. 84.26% of the stock is currently owned by institutional investors and hedge funds.

Zafgen Company Profile

Zafgen, Inc, a clinical-stage biopharmaceutical company, develops therapies for patients suffering from metabolic diseases comprising type 2 diabetes, Prader-Willi syndrome (PWS), and other metabolically related disorders. The company's lead product candidate is ZGN-1061, a fumagillin-class methionine aminopeptidase 2 (MetAP2) inhibitor administered by subcutaneous injection, which is in Phase 2 clinical trial and profiled for its utility in the treatment of type 2 diabetes and other related metabolic disorders.

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