Terns Pharmaceuticals (NASDAQ:TERN) Cut to Hold at Mizuho

Mizuho lowered shares of Terns Pharmaceuticals (NASDAQ:TERN) from a strong-buy rating to a hold rating in a report issued on Friday,Zacks.com reports.

A number of other analysts have also recently commented on TERN. Jefferies Financial Group reaffirmed a “buy” rating and set a $70.00 price target on shares of Terns Pharmaceuticals in a research report on Wednesday, December 10th. Truist Financial raised their price objective on Terns Pharmaceuticals from $35.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, December 9th. Wall Street Zen lowered Terns Pharmaceuticals from a “hold” rating to a “sell” rating in a research report on Saturday, March 21st. BMO Capital Markets increased their price target on shares of Terns Pharmaceuticals from $35.00 to $54.00 and gave the stock an “outperform” rating in a report on Tuesday, December 9th. Finally, UBS Group raised shares of Terns Pharmaceuticals to a “strong-buy” rating in a research report on Thursday, December 4th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $56.90.

Terns Pharmaceuticals Price Performance

Shares of TERN opened at $52.92 on Friday. The company’s fifty day moving average price is $41.28 and its 200-day moving average price is $29.36. Terns Pharmaceuticals has a 1-year low of $1.87 and a 1-year high of $53.19. The firm has a market capitalization of $5.49 billion, a PE ratio of -51.38 and a beta of -0.31.

Insider Activity

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

Institutional Investors Weigh In On Terns Pharmaceuticals

Several hedge funds have recently bought and sold shares of TERN. Commodore Capital LP purchased a new position in shares of Terns Pharmaceuticals during the 3rd quarter valued at approximately $42,807,000. Vestal Point Capital LP purchased a new position in Terns Pharmaceuticals in the fourth quarter valued at $181,800,000. Avoro Capital Advisors LLC acquired a new position in shares of Terns Pharmaceuticals in the fourth quarter worth about $175,740,000. Janus Henderson Group PLC acquired a new stake in shares of Terns Pharmaceuticals during the 4th quarter valued at about $136,496,000. Finally, Capitolis Liquid Global Markets LLC purchased a new position in shares of Terns Pharmaceuticals in the 4th quarter valued at about $123,026,000. Hedge funds and other institutional investors own 98.26% of the company’s stock.

Key Headlines Impacting Terns Pharmaceuticals

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

• Positive Sentiment: Merck agreed to acquire Terns for about $6.7 billion in cash, bringing a late‑stage leukemia candidate into MRK’s oncology lineup—this deal narrative is the primary bullish catalyst supporting a sharp rally toward the $53 offer price. Merck to Buy Terns for $6.7 Billion to Grow in Blood Cancers
• Positive Sentiment: Analysts and news outlets emphasize Merck’s acquisition as strategic—adding a leukemia asset as Keytruda faces patent pressure—supporting upside sentiment for TERN shares. Merck to Boost Oncology Pipeline With $6.7B Terns Buyout, Stock Up
• Positive Sentiment: Market commentary notes a possible bidding‑war dynamic after the Merck approach, which can lift the stock above the announced offer if other suitors emerge. Merck’s deal for Terns sparks debate over a possible biotech bidding war
• Positive Sentiment: Market reaction has pushed TERN to a new 52‑week high as investors price in the deal and potential takeover premium. Terns Pharmaceuticals (NASDAQ:TERN) Hits New 52-Week High – Still a Buy?
• Neutral Sentiment: HC Wainwright reiterated a “Neutral” rating and published FY2030 estimates and a $53.00 price target—its view aligns with the announced cash price, leaving limited analyst upside ahead of deal closure. HC Wainwright Reaffirms Neutral Rating for Terns Pharmaceuticals (NASDAQ:TERN)
• Negative Sentiment: Unusually large put option activity was reported (7,719 puts, a ~96% increase vs. typical put volume), suggesting some traders are hedging or positioning for downside/uncertainty around deal terms or timing.
• Negative Sentiment: A shareholder law firm (Kahn Swick & Foti) opened an investigation into the adequacy of the $53 per‑share price and the sale process, which could lead to litigation or delay and adds execution risk. Terns Pharmaceuticals Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Terns Pharmaceuticals, Inc. – TERN
• Negative Sentiment: Several brokers trimmed coverage or lowered stances to “Hold” (Citizens/JMP, TD Cowen), reducing near‑term buy-side reinforcement; TD Cowen’s $53 target effectively prices the deal in with little upside. Benzinga

Terns Pharmaceuticals Company Profile

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.