Terns Pharmaceuticals (NASDAQ:TERN) Hits New 52-Week High – Still a Buy?

Terns Pharmaceuticals, Inc. (NASDAQ:TERN) reached a new 52-week high during trading on Thursday . The stock traded as high as $52.98 and last traded at $52.86, with a volume of 81314600 shares changing hands. The stock had previously closed at $50.00.

Terns Pharmaceuticals News Summary

Here are the key news stories impacting Terns Pharmaceuticals this week:

• Positive Sentiment: Merck agreed to an all-cash acquisition at $53.00 per share, approved by both boards and structured as a tender offer with expected closing in Q2 2026 — the deal provides a clear near-term valuation floor and validates Terns’ lead asset, TERN-701, as strategically valuable to a large pharma buyer. Read More.
• Positive Sentiment: Major media and wire services emphasize the strategic fit (adding a CML allosteric BCR::ABL1 inhibitor) and Merck’s broader push to refill its oncology pipeline ahead of Keytruda’s patent cliff — reinforcing deal rationale for investors. Read More.
• Neutral Sentiment: HC Wainwright reaffirmed a “neutral” rating with a $53 price target (essentially aligned with the offer price), suggesting limited upside beyond the transaction price while the deal closes. Read More.
• Neutral Sentiment: Deal mechanics: transaction is a tender offer contingent on shareholder participation and customary closing conditions — market will watch vote/acceptance levels, regulatory review and timing rather than Terns’ standalone clinical milestones. Read More.
• Negative Sentiment: Multiple shareholder-law firms have launched investigations into whether Terns’ board obtained a fair price (Monteverde, Ademi, Halper Sadeh), which could lead to litigation, delay or pressure on deal terms — a risk for timing and transaction certainty. Read More. Read More. Read More.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on TERN shares. TD Cowen upgraded shares of Terns Pharmaceuticals to a “strong-buy” rating in a research note on Friday, February 20th. Citigroup restated an “outperform” rating on shares of Terns Pharmaceuticals in a report on Wednesday, November 26th. Citizens Jmp increased their price target on Terns Pharmaceuticals from $35.00 to $57.00 and gave the company a “market outperform” rating in a report on Thursday, December 11th. Truist Financial increased their price target on Terns Pharmaceuticals from $35.00 to $56.00 and gave the company a “buy” rating in a report on Tuesday, December 9th. Finally, UBS Group upgraded Terns Pharmaceuticals to a “strong-buy” rating in a research note on Thursday, December 4th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $57.33.

Terns Pharmaceuticals Price Performance

The company has a market cap of $5.48 billion, a price-to-earnings ratio of -51.32 and a beta of -0.31. The company’s 50-day simple moving average is $40.63 and its 200-day simple moving average is $28.57.

Insider Buying and Selling at Terns Pharmaceuticals

In other Terns Pharmaceuticals news, CEO Amy L. Burroughs sold 71,339 shares of the business’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $38.10, for a total value of $2,718,015.90. Following the transaction, the chief executive officer owned 138,976 shares in the company, valued at $5,294,985.60. The trade was a 33.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Emil Kuriakose sold 1,155 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $38.57, for a total transaction of $44,548.35. Following the completion of the transaction, the insider directly owned 50,365 shares of the company’s stock, valued at approximately $1,942,578.05. The trade was a 2.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 170,409 shares of company stock valued at $6,563,769 over the last 90 days. Insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Morgan Stanley boosted its holdings in Terns Pharmaceuticals by 4.7% in the fourth quarter. Morgan Stanley now owns 7,945,608 shares of the company’s stock valued at $321,003,000 after purchasing an additional 356,513 shares during the last quarter. Commodore Capital LP purchased a new stake in Terns Pharmaceuticals during the 3rd quarter worth approximately $42,807,000. Adage Capital Partners GP L.L.C. increased its holdings in Terns Pharmaceuticals by 40.9% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 5,550,000 shares of the company’s stock worth $224,220,000 after purchasing an additional 1,611,000 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Terns Pharmaceuticals by 21.1% in the 4th quarter. Vanguard Group Inc. now owns 5,523,948 shares of the company’s stock valued at $223,167,000 after purchasing an additional 964,031 shares in the last quarter. Finally, Vestal Point Capital LP purchased a new position in shares of Terns Pharmaceuticals during the 4th quarter valued at approximately $181,800,000. Institutional investors and hedge funds own 98.26% of the company’s stock.

About Terns Pharmaceuticals

Terns Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing oral small‐molecule therapies for the treatment of chronic liver diseases and other serious conditions. The company’s research and development efforts center on novel mechanisms of action designed to address the underlying causes of progressive liver disorders, including inflammation, fibrosis and metabolic dysregulation. By advancing targeted compounds that can be administered orally, Terns aims to offer patients more convenient and effective treatment options compared to injectable or biologic therapies.

The company’s pipeline features several candidates in various stages of preclinical and clinical evaluation.