Zafgen (NASDAQ:ZFGN) Upgraded by Zacks Investment Research to “Buy”

Zacks Investment Research upgraded shares of Zafgen (NASDAQ:ZFGN) from a hold rating to a buy rating in a research report report published on Sunday, Zacks.com reports. Zacks Investment Research currently has $1.00 price target on the biopharmaceutical company’s stock.

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. “

Several other analysts have also recently weighed in on the stock. Wedbush cut shares of Zafgen from an outperform rating to a neutral rating and cut their price target for the company from $6.00 to $0.78 in a report on Friday, September 6th. ValuEngine upgraded shares of Zafgen from a sell rating to a hold rating in a report on Thursday, August 1st. Piper Jaffray Companies dropped their target price on shares of Zafgen from $6.00 to $5.00 and set a hold rating for the company in a research report on Thursday, May 30th. JMP Securities lowered shares of Zafgen from an outperform rating to a market perform rating in a research note on Thursday, September 5th. Finally, Cowen reiterated a hold rating on shares of Zafgen in a research report on Thursday, May 30th. Seven research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $6.05.

ZFGN opened at $0.66 on Friday. Zafgen has a one year low of $0.63 and a one year high of $12.35. The company has a debt-to-equity ratio of 0.25, a current ratio of 6.98 and a quick ratio of 6.98. The business has a 50 day simple moving average of $0.87 and a two-hundred day simple moving average of $2.06. The firm has a market capitalization of $24.66 million, a price-to-earnings ratio of -0.35 and a beta of -0.52.

Zafgen (NASDAQ:ZFGN) last issued its quarterly earnings data on Thursday, August 8th. The biopharmaceutical company reported ($0.32) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.38) by $0.06. As a group, sell-side analysts expect that Zafgen will post -1.15 EPS for the current fiscal year.

Large investors have recently added to or reduced their stakes in the company. Jane Street Group LLC bought a new position in shares of Zafgen in the 2nd quarter worth about $133,000. Citadel Advisors LLC boosted its stake in Zafgen by 2.2% during the second quarter. Citadel Advisors LLC now owns 971,818 shares of the biopharmaceutical company’s stock worth $1,156,000 after acquiring an additional 20,953 shares in the last quarter. Jefferies Group LLC purchased a new stake in Zafgen in the second quarter worth about $32,000. Morgan Stanley grew its holdings in Zafgen by 150.8% in the second quarter. Morgan Stanley now owns 184,606 shares of the biopharmaceutical company’s stock worth $220,000 after purchasing an additional 110,989 shares during the period. Finally, Paloma Partners Management Co bought a new position in shares of Zafgen during the second quarter valued at approximately $163,000. 80.76% of the stock is currently owned by hedge funds and other institutional investors.

About Zafgen

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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