Terns Pharmaceuticals Inc. (NASDAQ:TERN) is one of 15 stocks with the biggest hedge fund momentum, after gaining 42 hedge fund holders during the fourth quarter of 2025. On February 9, Leerink Partners initiated coverage on Terns Pharmaceuticals Inc. (NASDAQ:TERN) with an Outperform rating and a price target of $58. Leerink Partners noted that TERN-701, Terns Pharmaceuticals Inc. (NASDAQ:TERN)’s next-generation allosteric inhibitor being developed for chronic myeloid leukemia, addresses a market with est ...

Company Overview - Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing innovative therapies for liver and metabolic diseases, particularly non-alcoholic steatohepatitis (NASH) and obesity [6] - The company has a diversified pipeline of small-molecule drug candidates with differentiated mechanisms and liver-targeted profiles [6] - Terns Pharmaceuticals reported a market capitalization of $4 billion and a net income of -$94.44 million for the trailing twelve months (TTM) [4] Recent Developments - First Turn Management, LLC disclosed a new position in Terns Pharmaceuticals, acquiring 872,049 shares valued at approximately $35.23 million as of February 13, 2026 [1][2] - This new position represents 4.03% of First Turn Management's total reportable U.S. equity holdings of $875.20 million as of December 31, 2025 [7] - Terns Pharmaceuticals shares were priced at $37.79, reflecting a remarkable one-year price change of 826.2%, significantly outperforming the S&P 500 by 814.43 percentage points [7][4] Pipeline and Product Development - Terns Pharmaceuticals is advancing several drug candidates, including TERN-101 (Phase IIa), TERN-201 (Phase Ib), TERN-501 (Phase I), and TERN-601 (preclinical/early clinical) [8] - The company aims to generate value through the advancement of proprietary drug candidates toward regulatory approval and potential out-licensing or commercialization partnerships [8] Market Performance and Investor Sentiment - The stock's significant price increase was largely driven by positive Phase 1 results for TERN-701 in relapsed and refractory chronic myeloid leukemia (CML), which reported a 75% cumulative major molecular response rate by 24 weeks [9] - The timing of First Turn Management's acquisition is unclear, as it is uncertain whether the shares were purchased before or after the stock's surge following the November data release [10]

Core Viewpoint - The current market trend is moving away from heavily shorted growth stocks, but there remains potential for contrarian investors to capitalize on short squeezes by identifying stocks that may rebound [1]. Group 1: Shorted Stocks Analysis - A screening process identifies stocks where short sellers might incur significant losses, indicating a potential for covering their positions [2]. - The analysis involves reviewing short interest reports from the past year to determine when shorts were added and estimating their average entry price based on prior performance [3]. Group 2: Notable Stocks with High Short Interest - Significant stocks with high short interest include: - AST SpaceMobile (ASTS) with a last close of $96.92 and a short interest percentage of 18.0%, showing a 225% increase in short interest [4]. - IREN, a data center company, with a last close of $42.67 and a short interest percentage of 12.8%, reflecting a 3929% increase [4]. - Oklo (OKLO), a nuclear energy startup, with a last close of $66.23 and a short interest percentage of 13.6%, indicating a staggering 5887% increase [4]. - Other notable mentions include: - APLD in digital assets with a last close of $36.60 and a short interest percentage of 36.9%, showing a 418% increase [4]. - SEI in investment banking with a last close of $53.73 and a short interest percentage of 27.9%, reflecting a 2348% increase [4].

Core Insights - Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is recognized as one of the 11 best-performing stocks over the past 12 months [1] Group 1: Strategic Developments - Terns Pharmaceuticals has amended its Exclusive Option and License Agreement with Hansoh (Shanghai) Healthtech Co., Ltd., converting a non-exclusive, royalty-free license into an exclusive, sublicensable, royalty-bearing, perpetual worldwide license for TERN-701, excluding the Hansoh Territory [2] - The company will pay a one-time upfront license fee of $1.0 million and tiered royalties of 0.75%-1.25% on annual net sales of TERN-701 products, with potential reductions applicable [3] Group 2: Analyst Sentiment - Citizens has raised its price target for Terns Pharmaceuticals from $35 to $57, maintaining an 'Outperform' rating, reflecting positive sentiment based on the interim Phase 1 CARDINAL ASH update showcasing TERN-701's strong profile and response rates [4] Group 3: Company Focus - Terns Pharmaceuticals specializes in developing small-molecule and combination therapies targeting NASH, oncology, and chronic liver disease, with clinical-stage programs focused on FXR, VAP-1, THR-β, and GLP-1 [5]

Core Insights - Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is recognized as one of the top 14 stocks to buy currently, with a Buy rating and a price target of $56 from Truist Financial analyst Srikripa Devarakonda [1] - The stock's price target was raised from $35 to $56 following positive Phase 1 study results for TERN-701, aimed at treating chronic myeloid leukemia (CML) [2] - The study demonstrated a 64% major molecular response rate at 24 weeks, indicating strong efficacy and safety, which has led to a bullish outlook from analysts [3] Analyst Ratings - Mizuho Securities also maintains an Outperform rating on Terns Pharmaceuticals with a price target of $54, viewing TERN-701 as a potential best-in-disease treatment for CML [3] - The consensus among Wall Street analysts is a Strong Buy rating, with shares having increased over 300% in the last three months [4] - Analysts project an additional upside of 42.31%, based on a one-year average share price target of $53.75 [4] Company Overview - Terns Pharmaceuticals is a biopharmaceutical company focused on developing treatments for serious diseases, including cancer and obesity [5] - The company aims to initiate pivotal trials for TERN-701 by the end of 2026, as stated by CEO Amy Burroughs [4]

Market Overview - The S&P 500 has shown significant gains, registering a 16% increase in 2025, following a 24% rise in 2023 and a 23% rise in 2024, totaling approximately 80% over the past three years, marking the strongest three-year performance since a 90% surge from 2019 to 2021 [1][2]. Economic Forecast - A Financial Times survey predicts a 10% gain in the S&P 500 for 2026, with all surveyed banks expecting the index to surpass 7,500 [2]. - Goldman Sachs anticipates a 12% rally in 2026, driven by earnings growth supported by a strong economy and Federal Reserve rate cuts [2][3]. Stock Valuation Insights - Ben Snider from Goldman Sachs highlights that double-digit profit growth and improved productivity from AI position the market for continued bullish trends, although high stock valuations could pose risks if earnings fall short [3][4]. Stock Selection Methodology - The article identifies U.S.-based stocks with market capitalizations of at least $2 billion that have increased by at least 20% over the past three months, further narrowing the list to those with a 50-day moving average above a 200-day moving average [6]. - The final selection includes 14 stocks with the highest average upside potential, based on data as of January 12, 2026, and includes hedge fund holdings as of Q3 2025 for additional investor interest insights [6][7]. Featured Stocks Alphatec Holdings, Inc. (NASDAQ: ATEC) - Projected revenue for 2026 is between $890 million, with 90% expected to be surgical-related, and adjusted EBITDA anticipated at around $130 million [10]. - The company reported a 25% increase in total revenue for 2025, driven by a 26% surge in surgical revenue, and ended the year with a cash balance of $161 million [9]. - Wall Street has a consensus Strong Buy rating with a one-year average share price target of $24.55, indicating an upside of nearly 40% [12]. Terns Pharmaceuticals, Inc. (NASDAQ: TERN) - The stock has surged over 300% in the past three months, with analysts projecting a further 42.31% upside based on a one-year average share price target of $53.75 [16]. - The company received a Buy rating from Truist Financial, with a price target raised to $56 following positive Phase 1 study results for its lead program targeting chronic myeloid leukemia [14][15]. - Mizuho Securities also reiterated an Outperform rating, indicating strong potential for TERN-701 as a leading treatment for CML [15].

Group 1 - Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is recognized as a top performer, with a remarkable increase of 629.64 percent in 2025, driven by positive clinical trial results for its therapy candidate targeting chronic myeloid leukemia (CML) [1][2] - The therapy candidate, TERN-701, demonstrated a 64 percent improvement in the conditions of 63 enrolled CML patients after 24 weeks of treatment [1][2] - A major molecular response rate of 74 percent was observed at a higher dosage of 320 mg among the trial participants [2] Group 2 - Terns Pharmaceuticals successfully raised $747.5 million through the issuance of over 18.68 million shares to the public, with funds allocated for the development and commercial launch of TERN-701 [2] - The remaining proceeds from the fundraising will be utilized for working capital and other general corporate purposes [2]

Group 1: Palvella Therapeutics Inc. (PVLA) - Palvella is a clinical-stage biopharmaceutical company focused on developing therapies for rare diseases with no FDA-approved treatments [2] - Its lead product, QTORIN rapamycin, targets microcystic lymphatic malformations and has a multi-billion-dollar market opportunity if approved [2] - The stock rose from $25 on March 10, 2025, to a 52-week high of $114.69 on December 22, 2025, before pulling back to $99.88 [3] Group 2: Cidara Therapeutics Inc. (CDTX) - Cidara is developing a preventive therapy for influenza and has agreed to be acquired by Merck for $221.50 per share, totaling approximately $9.2 billion [4] - The stock was trading at $18.98 when profiled on November 21, 2024 [4] Group 3: Celcuity Inc. (CELC) - Celcuity is focused on targeted therapies for oncology, with its lead drug candidate Gedatolisib aimed at breast and prostate cancers [5] - The stock increased from $12.60 on December 4, 2024, to an all-time high of $112.64 on December 12, 2025, before retreating to $99.16 [6] Group 4: Nanobiotix (NBTX) - Nanobiotix is a late-stage clinical biotechnology company developing physics-based therapies for cancer [7] - Its lead candidate, NBTXR3, is undergoing a phase III study for head and neck squamous cell carcinoma, with interim data expected in the first half of 2027 [8] - The stock rose from $12.23 on September 19, 2025, to a high of $30.35 on October 13, 2025, before trading around $21 [10] Group 5: Terns Pharmaceuticals Inc. (TERN) - Terns Pharma is developing small-molecule candidates for serious diseases, with TERN-701 targeting chronic myeloid leukemia [12] - Recent data showed a 75% major molecular response rate among patients receiving higher doses [13] - The stock increased from $5.98 on August 6, 2025, to an all-time high of $48.26 on December 10, 2025, before pulling back to around $40 [14] Group 6: DBV Technologies S.A. (DBVT) - DBV Technologies is developing an epicutaneous immunotherapy for food allergies, with its lead product, the VIASKIN Peanut patch, showing positive results in a phase 3 study [15] - The company aims to submit a Biologics License Application in the first half of 2026, with potential sales of $1.5 billion by 2030 if approved [15] - The stock rose from $10.64 on October 2, 2025, to a high of $26.18 on December 17, 2025, before trading around $19 [16] Group 7: Nutex Health Inc. (NUTX) - Nutex Health reported a significant turnaround from a $424 million net loss in 2022 to a $59 million net income for the nine months ended September 30, 2025 [17] - Revenue increased from $219 million in 2022 to $723.6 million in the first nine months of 2025 [17] - The stock rose from $33.56 on November 25, 2024, to a 52-week high of $193.07 before closing at $182.23 [18] Group 8: Inhibrx Biosciences Inc. (INBX) - Inhibrx is developing biologic therapies for cancer, with Ozekibart showing significant improvement in progression-free survival in chondrosarcoma [19] - The company plans to submit a biologics license application for Ozekibart in the second quarter of 2026 [20] - The stock rose from $18.35 on July 8, 2025, to an all-time high of $94.57 on December 22, 2025, before trading around $77 [21] Group 9: GRAIL Inc. (GRAL) - GRAIL focuses on early cancer detection with its Galleri test, which is not yet FDA-approved [23] - The company expects to submit a PMA for the Galleri test in Q1 2026 [23] - The stock increased from $48.50 on September 26, 2025, to a high of $115.76 on November 25, 2025, before trading around $88 [24] Group 10: Cogent Biosciences Inc. (COGT) - Cogent is developing precision therapies for genetically defined diseases, with Bezuclastinib being its lead candidate [25] - The company submitted its first NDA to the FDA for Non-AdvSM, with additional submissions planned for GIST and advanced systemic mastocytosis [26] - The stock rose from $7.25 on July 2, 2025, to a 52-week high of $43.73 on December 8, 2025, before easing back to around $35 [26] Group 11: Sol-Gel Technologies Ltd. (SLGL) - Sol-Gel has two FDA-approved products for dermatological conditions and is developing investigational products [27] - A phase III trial for SGT-610 is ongoing, with results expected in Q4 2026 [28] - The stock rose from $7.26 on May 7, 2025, to a high of $52.26 on October 6, 2025, before trading around $43 [28] Group 12: Zenas BioPharma Inc. (ZBIO) - Zenas is focused on therapies for autoimmune diseases, with Obexelimab in phase 3 trials for IgG4-RD [29] - Positive data from a phase 2 trial in multiple sclerosis showed a 95% reduction in new lesions [30] - The stock rose from $8.79 on December 17, 2024, to a high of $44.60 on December 24, 2025, before pulling back to around $35 [31]

Company Overview - Terns Pharmaceuticals, Inc. (NASDAQ:TERN) specializes in developing small-molecule therapies for cancer and obesity, with key products including TERN-701 for chronic myeloid leukemia, TERN-501 for metabolic liver disease, and oral obesity treatments through TERN-601 and TERN-800 programs [2]. Recent Developments - On December 8, Terns Pharmaceuticals announced positive results for TERN-701, reporting a 64% major molecular response (MMR) rate in Phase 1 trials [2]. - The therapy achieved a 75% response rate at doses of 320 mg and above over a 24-week period, supporting these doses as the recommended Phase 2 doses [2]. - The Chief Medical Officer, Emil Kuriakose, highlighted a 36% durable molecular response (DMR) achievement rate by 24 weeks, indicating fast response kinetics and a favorable safety profile across all doses [2]. Market Performance - The stock of Terns Pharmaceuticals experienced significant volatility, rising from approximately $2 to around $48 before a slight pullback, indicating strong market interest and potential investor excitement [1].

Core Insights - The ALPS Medical Breakthroughs ETF (SBIO) has surged 10.51% in November, nearing its 52-week high of $51.87, driven by positive clinical trial data and increased merger activity in small- and mid-cap biotech companies [1][2] Performance and Inflows - SBIO outperformed the Nasdaq Biotechnology Index, which gained 8.5% in November, as investors shifted focus to smaller companies with drugs in late-stage development [2] - The ETF attracted $19.54 million in net inflows over the past month, bringing total assets to $116.8 million [2] Investment Strategy - SBIO targets biotech companies with at least one drug in Phase II or III clinical trials, focusing on firms with near-term catalysts while avoiding early-stage companies [3] - The fund benefits from improved financing conditions due to Federal Reserve rate cuts, which support long-duration growth stories like drug pipelines [6] Notable Performers - Terns Pharmaceuticals, Inc. (TERN) saw a 240.3% increase after positive Phase I data for its chronic myeloid leukemia candidate [4] - Olema Pharmaceuticals, Inc. (OLMA) gained 215.7% following Roche's successful Phase III results for its oral breast cancer treatment, prompting a reassessment of Olema's late-stage drug opportunities [5] Market Trends - Biopharma mergers and acquisitions in 2025 have already exceeded last year's totals, as large pharmaceutical companies seek to replenish pipelines ahead of a wave of patent expirations [8] - SBIO has achieved a return of approximately 71.8% over the past six months, outperforming the S&P Biotechnology Select Industry Index by over 16 percentage points and the S&P 500 Index by more than 55 percentage points [7]