Christopher Posner, President and CEO of Cara Therapeutics Inc. (NASDAQ:CARA), recently sold 3,668 shares of the company’s common stock. The sale, conducted on November 4, 2024, was executed at a price of $0.29 per share, amounting to a total transaction value of $1,063. Following the sale, Posner retains direct ownership of 168,768 shares in the company.
According to the filing, this transaction was part of a "sell to cover" arrangement. This arrangement was established on November 2, 2022, under Rule 10b5-1 to meet tax withholding obligations resulting from the vesting of restricted stock units. The transaction was not a discretionary trade by Posner.
InvestingPro Insights
The recent insider sale by Christopher Posner comes at a challenging time for Cara Therapeutics. According to InvestingPro data, the company's stock has experienced a significant decline, with a 78.12% drop in the past year and a 63.16% decrease over the last six months. This aligns with an InvestingPro Tip indicating that the stock price has fallen substantially over the past year.
Cara Therapeutics is facing financial headwinds, as evidenced by its revenue growth of -59.53% in the last twelve months. An InvestingPro Tip suggests that analysts anticipate a sales decline in the current year, which could explain the recent stock performance. The company's market capitalization stands at a modest $17.82 million, reflecting investor concerns about its future prospects.
Despite these challenges, Cara Therapeutics maintains a strong liquidity position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion may provide some stability as the company navigates through its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Cara Therapeutics, providing deeper insights into the company's financial health and market position.
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