Rajagopalan Harith, the Chief Executive Officer of Fractyl Health Inc. (NASDAQ:GUTS), has recently sold shares of the company worth approximately $238,358. The transaction, disclosed in a recent SEC filing, involved the sale of 96,517 shares at an average price of $2.4696 per share on November 11, 2024. This sale was conducted for tax-withholding purposes related to the vesting of restricted stock units.
Prior to this transaction, Harith had acquired 216,924 shares of common stock through the vesting of restricted stock units on November 10, 2024. These units were acquired at no cost, as per the filing.
Following these transactions, Harith's direct ownership stands at 491,329 shares. Additionally, Harith holds indirect ownership through various trusts, totaling 600,980 shares.
InvestingPro Insights
As we delve deeper into Fractyl Health Inc.'s (NASDAQ:GUTS) financial landscape, recent data from InvestingPro sheds light on the company's current position. With a market capitalization of $116.46 million, GUTS is operating in a challenging environment, as evidenced by several key metrics.
InvestingPro data reveals that GUTS has experienced a significant revenue growth of 54.55% over the last twelve months as of Q2 2024. However, this growth comes with caveats. The company's operating income margin stands at a staggering -59,984.03%, indicating substantial operational challenges. This aligns with an InvestingPro Tip noting that GUTS is "quickly burning through cash," which could be a concern for investors following the recent insider sale.
Another InvestingPro Tip highlights that GUTS "holds more cash than debt on its balance sheet," suggesting some financial flexibility despite its operational losses. This could be crucial as the company navigates its current challenges and works towards profitability.
The stock's performance has been notably weak, with a one-year price total return of -81.56% as of the latest data. This significant decline is reflected in another InvestingPro Tip stating that the "price has fallen significantly over the last year." This context adds weight to the recent insider transaction, as it occurred against a backdrop of substantial share price depreciation.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context to Fractyl Health's financial situation and market performance. Currently, there are 8 additional tips available on the InvestingPro platform for GUTS, which could offer a more nuanced understanding of the company's prospects and challenges.
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