In a recent transaction, Fortress Biotech, Inc. (NASDAQ:FBIO) CEO Lindsay (NYSE:LNN) A. Rosenwald has purchased additional shares of the company's common stock. On June 28, 2024, Rosenwald acquired 20,000 shares at a price of $1.6362 per share, amounting to a total investment of $32,724.
This purchase comes as part of Rosenwald's ongoing investment in the company, where he holds multiple roles including President, CEO, and Chairman. Following the transaction, the CEO now owns a total of 2,893,905 shares in the biopharmaceutical company, which specializes in the development of novel therapies for rare diseases and oncology.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' confidence in the company's future prospects. Rosenwald's additional investment in Fortress Biotech may be seen as a reaffirmation of his commitment to the company's strategic direction and potential for growth.
Fortress Biotech, headquartered in Bay Harbor Islands, Florida, has a diverse portfolio of development-stage pharmaceuticals and has been actively advancing its pipeline of therapies through clinical trials and strategic partnerships.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency on insider trades. Shareholders and potential investors can access these filings to stay informed about the financial dealings of company insiders.
In other recent news, Fortress Biotech has fulfilled its financial obligations to investors by issuing new shares of common stock to former holders of convertible preferred stock in a subsidiary, Urica Therapeutics. In parallel, Mustang Bio (NASDAQ:MBIO), a company founded by Fortress Biotech, has announced a stock offering and concurrent private placement expected to generate gross proceeds of approximately $2.5 million. Furthermore, Mustang Bio has reported a 90% response rate in its Phase 1/2 clinical trial of MB-106, a CAR T-cell therapy for Waldenstrom macroglobulinemia, a rare blood cancer.
H.C. Wainwright has significantly increased its stock target for Fortress Biotech from $10.00 to $24.00, reflecting an optimistic outlook for the company. Meanwhile, Roth/MKM has maintained a Buy rating on Fortress Biotech, citing the company's 2023 revenue of $84.5 million, an increase from the $75.7 million reported in 2022. These are the recent developments in the activities of both Mustang Bio and Fortress Biotech.
InvestingPro Insights
Fortress Biotech, Inc. (NASDAQ:FBIO) has been under the investor microscope following recent insider activity. CEO Lindsay A. Rosenwald’s additional share purchase aligns with the company's current financial metrics and market position. Here are some InvestingPro Insights to consider:
Fortress Biotech's market capitalization stands at $38.37 million, reflecting the market's valuation of the company. The firm's revenue over the last twelve months as of Q1 2024 was reported at $85.11 million, with a notable growth of 32.48%. This suggests an upward trajectory in the company’s ability to generate sales. However, it's important to note the company's gross profit margin during the same period was -39.14%, indicating challenges in maintaining profitability relative to revenue.
Despite these challenges, one of the InvestingPro Tips highlights that net income is expected to grow this year, which may signal a turnaround in profitability and could be a factor in the CEO’s confidence to increase his stake. Additionally, Fortress Biotech is trading at a low revenue valuation multiple, which might suggest the stock is undervalued relative to its sales, presenting a potential opportunity for investors.
Investors should be aware that the company has experienced significant price volatility, with a -79.27% price total return over the past year. This level of volatility can be a double-edged sword, offering the potential for high rewards but also higher risks.
For those looking for more insights, there are additional InvestingPro Tips available for Fortress Biotech, which can be accessed at https://www.investing.com/pro/FBIO. These tips provide a deeper analysis of the company’s financial health and market predictions. Interested investors can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of financial data and expert analysis to inform investment decisions.
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