Ming Hsieh, Chief Executive Officer of Fulgent Genetics, Inc. (NASDAQ:FLGT), recently sold 2,227 shares of the company's common stock. The shares were sold at an average price of $18.2593, generating a total of $40,663. This transaction was carried out to cover tax withholding obligations related to the vesting of restricted stock units granted earlier this year.
Following this sale, Hsieh holds 703,711 shares directly. Additionally, he maintains indirect ownership of shares through several trusts and custodial accounts, including 7,895,115 shares held by The Ming Hsieh Trust and 220,816 shares by a Dynasty Trust. Furthermore, Hsieh acts as a custodian for 1,000 shares in a Uniform Transfers to Minors Act account.
In other recent news, Fulgent Genetics announced its Q3 2024 earnings results, revealing a total revenue of $71.7 million, down from the previous year's $84.7 million. This decline was largely due to reduced COVID-19 testing revenue. However, the company experienced an 18.8% year-over-year increase in its precision diagnostics revenue, specifically in the reproductive health and oncology sectors. Furthermore, Fulgent Genetics reported significant progress on drug candidates FID-007 and FID-022, with the former entering Phase II clinical trials and the latter moving towards an investigational new drug application by the end of 2024.
In addition to these developments, Fulgent Genetics reported a decrease in operating expenses to $43.9 million and a $10.1 million impairment loss on its investment in Helio (WA:HEL) Health. Despite these challenges, the company maintains a strong balance sheet with $815.4 million in cash and equivalents. Looking ahead, Fulgent Genetics projects a core revenue of $280 million for 2024, reflecting a 7% year-over-year growth, and an anticipated EPS loss of $1.70, excluding one-time charges.
Lastly, the company has secured a $99 million VA contract, which is expected to contribute to revenue growth starting in 2025. These recent developments highlight Fulgent Genetics' strategic focus on precision diagnostics and drug development, setting the stage for potential future growth.
InvestingPro Insights
While Ming Hsieh's recent stock sale was primarily to cover tax obligations, it's worth examining Fulgent Genetics' current financial position and market performance to provide context for investors.
According to InvestingPro data, Fulgent Genetics has a market capitalization of $552.7 million, with its stock trading at a price-to-book ratio of 0.49 as of the last twelve months ending Q3 2024. This suggests the stock may be undervalued relative to its book value, which could be of interest to value-oriented investors.
InvestingPro Tips highlight that management has been aggressively buying back shares, indicating confidence in the company's future prospects. Additionally, Fulgent holds more cash than debt on its balance sheet, which provides financial flexibility and stability during uncertain times.
It's noteworthy that while the company was not profitable over the last twelve months, analysts predict Fulgent will be profitable this year. This aligns with another InvestingPro Tip stating that net income is expected to grow this year, potentially signaling a turnaround in the company's financial performance.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Fulgent Genetics, providing a deeper understanding of the company's financial health and market position.
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