Terns Pharmaceuticals (NASDAQ:TERN) Sets New 12-Month High – Here’s Why

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

Trending Headlines about Terns Pharmaceuticals

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.

Analysts Set New Price Targets

A number of research firms have recently weighed in on TERN. Mizuho boosted their price target on Terns Pharmaceuticals from $33.00 to $54.00 and gave the stock an “outperform” rating in a report on Tuesday, December 9th. BMO Capital Markets lifted their price objective on Terns Pharmaceuticals from $35.00 to $54.00 and gave the stock an “outperform” rating in a research report on Tuesday, December 9th. Citizens Jmp boosted their target price on shares of Terns Pharmaceuticals from $35.00 to $57.00 and gave the company a “market outperform” rating in a research note on Thursday, December 11th. TD Cowen upgraded shares of Terns Pharmaceuticals to a “strong-buy” rating in a report on Friday, February 20th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Terns Pharmaceuticals in a research note on Wednesday, November 26th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $57.33.

Terns Pharmaceuticals Price Performance

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

Insider Buying and Selling

In other Terns Pharmaceuticals news, insider Emil Kuriakose sold 1,155 shares of Terns Pharmaceuticals stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $38.57, for a total value of $44,548.35. Following the transaction, the insider owned 50,365 shares in the company, valued at $1,942,578.05. This trade represents a 2.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, 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 transaction of $2,718,015.90. Following the sale, the chief executive officer directly owned 138,976 shares of the company’s stock, valued at $5,294,985.60. This represents a 33.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 170,409 shares of company stock worth $6,563,769. 1.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Terns Pharmaceuticals

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