AARD Stock Slumps 54% Pre-Market – Here’s Why Analysts Are Not ‘Comfortable’ With The Suspension Of A Key Phase 3 Trial

Aardvark Therapeutics shares saw brokerage downgrades after the company paused its Phase 3 trial to treat hyperphagia in patients with Prader-Willi syndrome.

• Aardvark voluntarily paused the HERO Phase 3 trial on Friday after a routine safety monitoring of a healthy volunteer found reversible cardiac effects.
• Aardvark said it no longer expects to release HERO trial topline data in Q3 2026.
• Stifel called the development a “surprise” and said that the “added uncertainty is hard to get comfortable with.”

Shares of Aardvark Therapeutics (AARD) plummeted 4% in pre-market trading on Monday after a wave of bearish analyst downgrades following the company’s decision to pause its Phase 3 trial evaluating the treatment for hyperphagia in patients with Prader-Willi syndrome.

If the pre-market levels hold after the opening bell, AARD shares could fall to their lowest levels since Apr. 9, 2025.

On Friday, Aardvark said it voluntarily paused the HERO Phase 3 and related extension trials after a routine safety monitoring of a healthy volunteer found reversible cardiac effects at doses above the target therapeutic level.

Aardvark said it no longer expects to release HERO trial topline data in the third quarter (Q3) of 2026 and will instead provide updated guidance in the second quarter.

Analyst Expresses Skepticism About The New Uncertainty

Stifel downgraded Aardvark Therapeutics to ‘Hold’ from ‘Buy’ and reduced its price target to $6 from $24, according to The Fly. This represents a 52% downside to Friday’s closing price of $12.5. The brokerage called the development a “surprise” and said that the “added uncertainty is hard to get comfortable with.” It is “very hard to build confidence in what the path forward may look like,” Stifel added.

Morgan Stanley downgraded Aardvark Therapeutics to ‘Equal Weight’ from ‘Overweight’ and significantly slashed its price target to $7 from $29, according to The Fly. While the brokerage still sees potential for ARD-101, it lowered its rating due to near-term uncertainties.

RBC Capital said that timelines are likely to be significantly delayed as the Aardvark works with the FDA on next steps, adding a “layer of uncertainty” around the program. The brokerage downgraded the stock to ‘Sector Perform’ from ‘Outperform’ and cut its price target to $6 from $18.

How Did Stocktwits Users React?

While retail sentiment on Stocktwits remained ‘extremely bullish,’ amid ‘extremely high’ message volumes, chatter was largely ‘bearish’.

One user said the suspension of the trial was “one of the worst news.”

Another user expects the stock to decline to $3.

The stock has lost around 56% so far in 2026.

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