John Nachum Stein, a director at NexGel, Inc. (NASDAQ:NXGL), recently reported a purchase of 3,636 shares of the company's common stock on November 20, 2024. The shares were acquired at a price of $2.75 each, amounting to a total transaction value of $9,999.
In a separate transaction on November 7, 2024, Stein made a bona fide gift of 4,000 shares to a charitable organization, as noted in the filing. Following these transactions, Stein holds a total of 471,456 shares in direct ownership.
Additionally, Stein acquired a warrant to purchase 1,818 shares of common stock, as part of NexGel's registered direct offering. The warrant, which carries an exercise price of $4.25, is set to expire on November 20, 2029. Stein has agreed not to sell or otherwise dispose of any of the shares or the shares underlying the warrant for 180 days following the acquisition date.
In other recent news, NEXGEL, a specialty hydrogel producer, posted a record revenue of $2.94 million in Q3 2024, marking a significant increase of 141% year-over-year. This growth was primarily driven by the acquisition of the Silly George brand and a robust performance in contract manufacturing. Despite the revenue surge, the company reported a net loss of $754,000, a rise from the $552,000 loss in the same quarter of the previous year.
In addition to its financial performance, NEXGEL has been actively pursuing strategic initiatives. The company launched Histasolv in collaboration with STADA and entered a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. Furthermore, a human trial for a hydrogel application in laser hair removal is underway, with results anticipated in Q4 2024.
Looking ahead, NEXGEL forecasts exceeding $3 million in Q4 2024 revenue and expects potential revenue from the laser hair removal study in the first half of 2025. The company also plans to expand its distribution in Europe and the U.S., with products expected in stores by 2025. These recent developments underline NEXGEL's commitment to growth and its strategic focus on enhancing its market presence.
InvestingPro Insights
Recent insider activity at NexGel, Inc. (NASDAQ:NXGL) aligns with several key financial metrics and trends highlighted by InvestingPro. The company's market capitalization stands at $24.58 million, reflecting its small-cap status in the biotech sector.
NexGel has shown impressive revenue growth, with a 90.57% increase over the last twelve months as of Q3 2024, and an even more striking 140.79% quarterly growth in Q3 2024. This robust growth trajectory supports the InvestingPro Tip that analysts anticipate sales growth in the current year.
Despite the strong top-line performance, NexGel is not yet profitable, as indicated by its negative operating income of -$3.93 million and EBITDA of -$3.48 million over the last twelve months. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
The stock's performance has been noteworthy, with a 77.72% price return over the past year and a 40.34% return over the last six months. Currently trading at $3.27, NXGL is near its 52-week high, with the price at 93.52% of its peak. This strong momentum is reflected in the InvestingPro Tip highlighting the stock's high return over the last year and its trading near the 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for NXGL, providing deeper insights into the company's financial health and market position.
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