In a recent transaction, Xie Jian, the President and Chief Operating Officer of Fulgent Genetics, Inc. (NASDAQ:FLGT), sold 1,455 shares of the company's common stock. The shares were sold at an average price of $19.4999, resulting in a total transaction value of $28,372. Following the sale, Jian holds 334,681 shares directly. While this insider sale occurred, InvestingPro data shows the company maintains strong financial health with a current ratio of 4.4x and minimal debt-to-equity of 0.01, indicating robust balance sheet management. The stock currently trades at $20.20, showing an 8% gain over the past week.
This sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units granted in 2022. Additionally, Jian indirectly owns 220,816 shares through The Hsieh Family Dynasty Trust. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with management actively buying back shares. Discover 8 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Fulgent Genetics disclosed its third-quarter earnings for 2024, which saw a decline in total revenue to $71.7 million from $84.7 million in the same quarter the previous year. This decrease was largely due to minimal revenue from COVID-19 testing. However, the company experienced an 18.8% year-over-year increase in precision diagnostics revenue, particularly in reproductive health and oncology. Fulgent Genetics also made notable progress with its drug candidates FID-007 and FID-022, with FID-007 initiating Phase II clinical trials and FID-022 moving towards an investigational new drug application by the end of 2024.
The company reported a $10.1 million impairment loss on its investment in Helio (WA:HEL) Health, despite maintaining a strong balance sheet with $815.4 million in cash and equivalents. Fulgent Genetics projected a core revenue of $280 million for 2024, reflecting a 7% growth from the previous year, and an anticipated EPS loss of $1.70, excluding one-time charges. Among other developments, the company secured a $99 million VA contract, expected to boost revenue growth starting in 2025.
During the earnings call, the company discussed its growth strategy, focusing on precision diagnostics and drug development. Management expressed confidence in their revamped sales strategy, particularly in the anatomic pathology segment, as questioned by David Westenberg from Piper Sandler. These are among the recent developments at Fulgent Genetics.
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