Desiree Gruber, a director at Beauty Health Co (NASDAQ:SKIN), recently sold 14,663 shares of Class A Common Stock. The shares were sold at an average price of $1.5019 each, amounting to a total of $22,022. Following this transaction, Gruber holds 119,514 shares directly. This sale is part of routine trading activity and reflects Gruber's ongoing involvement with the company. Beauty Health Co, known for its surgical and medical instruments, continues to attract investor attention with its strategic moves in the industry.
In other recent news, The Beauty Health Company has seen some significant developments. The company's third-quarter earnings report revealed an EBITDA of $8.1 million, surpassing both company guidance and analysts' expectations. Despite a decline in sales, the outcome was more favorable than anticipated, with a 19% decrease versus the projected 23%. Furthermore, the company's consumables segment, which accounts for 65% of the sales mix, continued to show growth with a 10% increase.
TD Cowen recently adjusted its outlook on The Beauty Health Company, raising the price target to $2.00 from the previous $1.20 while maintaining a Hold rating. This adjustment came in light of the company's better-than-expected third-quarter results. However, TD Cowen cited a lack of visibility in sales growth as the reason for caution.
Beauty Health Company reported a 19.1% year-over-year decline in Q3 revenue, totaling $78.8 million. Despite this, the company managed to improve its adjusted gross margin to 69.5% and cut operating expenses by 10.6% to $62.2 million. The company also projects full-year 2024 sales between $322 million to $332 million, with adjusted EBITDA expected to range from negative $2 million to positive $4 million.
In other developments, the company ended its partnership with Sephora, resulting in a $2 million charge for obsolete inventory. However, the launch of the HydraFacial HydraLoc HA Booster was well-received, and there was a notable rise in sales of Elite systems in the U.S. Beauty Health remains optimistic about consumables sales driven by an increase in devices placed in the market.
InvestingPro Insights
The recent insider sale by Desiree Gruber at Beauty Health Co (NASDAQ:SKIN) comes at a time when the company is facing significant challenges. According to InvestingPro data, SKIN's stock has taken a substantial hit, with a 43.77% decline over the past six months and a 52.09% drop year-to-date. This downward trend aligns with the company's financial performance, as revenue growth has declined by 12.94% over the last twelve months.
Despite these headwinds, InvestingPro Tips highlight that management has been aggressively buying back shares, which could signal confidence in the company's long-term prospects. However, it's worth noting that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year.
On a positive note, Beauty Health Co's liquid assets exceed its short-term obligations, providing some financial flexibility. The company's price-to-book ratio stands at 2.89, which may interest value investors considering the recent stock price decline.
For readers seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for SKIN, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable given the current volatility in Beauty Health Co's stock performance.
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