Applied Therapeutics, Inc. (NASDAQ:APLT) Chief Medical Officer, Riccardo Perfetti, has recently sold company shares valued at more than $95,000. The transaction took place on June 6, 2024, and involved the sale of 22,003 shares at a price of $4.32 each.
The sale was conducted to cover tax withholding obligations related to the vesting and settlement of compensatory Restricted Stock Units. It is important for investors to note that the shares were sold to satisfy tax withholding requirements through a "sell to cover" transaction. This type of sale is typically not considered a discretionary trade by the reporting person.
Following the transaction, Perfetti still retains a substantial number of shares in the company, with 1,009,534 shares remaining in his possession. This indicates a continued investment in the company's future and alignment with shareholder interests.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's value. While sales to cover tax obligations are a routine part of compensation for executives, they can also reflect changes in ownership that are worth noting.
Applied Therapeutics, headquartered in New York, operates in the pharmaceutical preparations industry and is known for its focus on addressing significant unmet medical needs. The company's stock performance and insider transactions such as this one are closely watched by investors seeking to gauge market sentiment and future prospects.
The transaction was officially filed with the Securities and Exchange Commission and can be found in the public records for those who wish to review the details further.
In other recent news, Applied Therapeutics has seen several significant developments. The company recently appointed Dale Hooks as its new Chief Commercial Officer, who brings over three decades of experience in the biopharmaceutical industry. This change in leadership comes as the company anticipates the potential approval and launch of its lead drug candidate, govorestat.
Applied Therapeutics also revealed comprehensive results from its Phase 3 ARISE-HF study at the American College of Cardiology Annual Scientific Session. The study evaluated AT-001, an investigational treatment for Diabetic Cardiomyopathy, and found that AT-001 significantly prevented the progression to overt heart failure compared to a placebo in patients with DbCM.
Meanwhile, the FDA has extended its review of the New Drug Application for govorestat, a treatment for Classic Galactosemia, by three months. Despite the delay, Applied Therapeutics remains confident in the potential approval of govorestat and continues to provide the drug to patients with Galactosemia through an expanded access program.
In the realm of stock analysis, RBC Capital Markets has initiated coverage on shares of Applied Therapeutics, bestowing an Outperform rating and setting a price target of $12.00. RBC Capital's confidence is rooted in the potential success of Applied Therapeutics' lead drug, govorestat. The firm's valuation is supported by the substantial revenue opportunity estimated to exceed $650 million at peak sales for govorestat.
InvestingPro Insights
Applied Therapeutics, Inc. (NASDAQ:APLT) has recently seen notable insider trading activity, with Chief Medical Officer Riccardo Perfetti selling shares for tax obligations. While this event alone may not signal any fundamental changes in the company's outlook, it is essential to consider broader financial metrics and market performance to understand the company's current position.
InvestingPro data shows that Applied Therapeutics holds a market capitalization of $587.91 million, which is a critical figure for investors assessing the company's size and market value. Despite a challenging financial performance with a reported revenue of -$0.48 million for the last twelve months as of Q1 2024, the company has experienced significant stock price movements. This includes a high return over the last year, with a 217.69% price total return, alongside a more recent uptick of 9.11% over the last week.
Two InvestingPro Tips that may be of interest to investors considering APLT's stock are:
- The company holds more cash than debt on its balance sheet, which can provide financial flexibility and may be a sign of a solid liquidity position.
- Despite recent stock price increases, analysts have revised their earnings downwards for the upcoming period, suggesting potential concerns about future profitability.
Investors should also be aware that Applied Therapeutics does not pay a dividend to shareholders, which could influence investment decisions for those seeking income-generating stocks. Additionally, the stock is trading at a high Price / Book multiple of 8.68. This valuation metric, coupled with significant volatility in stock price movements, indicates that the market may be assigning a premium to the company's book value.
For investors seeking a deeper analysis of Applied Therapeutics, there are additional InvestingPro Tips available. These tips can provide further insights into the company's financial health and market expectations. To explore these tips, visit https://www.investing.com/pro/APLT and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this code, you'll gain access to a comprehensive set of metrics and analysis tools to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.