In a recent transaction, Deborah Messemer, a director at Allogene Therapeutics, Inc. (NASDAQ:ALLO), sold shares of the company's stock, according to a Form 4 filing with the Securities and Exchange Commission. The transaction took place on June 18, 2024, and involved the sale of 18,641 shares at an average price of $2.2793 per share, resulting in a total value of $42,488.
The shares were reportedly sold under a Rule 10b5-1 trading plan, which was adopted on June 29, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, thereby helping to avoid accusations of insider trading.
The prices at which the shares were sold ranged from $2.25 to $2.30, indicating that the transactions were executed at various price points within this range. Following the sale, Messemer still owns a total of 166,765 shares of Allogene Therapeutics stock, directly holding the shares.
Allogene Therapeutics, based in South San Francisco, California, operates in the biotechnology industry, focusing on biological products. Investors often monitor insider transactions as they can provide insights into the company's performance and insiders' views on the stock's valuation.
The Form 4 filing also included a footnote stating that Messemer is willing to provide additional details regarding the number of shares sold at each price to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission upon request.
The sale was signed off by Earl Douglas, Attorney-in-Fact, as indicated by the power of attorney included in the filing. This document authorizes Douglas, along with other specified individuals, to act on behalf of Messemer in fulfilling the reporting obligations under Section 16(a) of the Securities Exchange Act of 1934.
In other recent news, Allogene Therapeutics has been the focus of several analyst firms following its financial results and strategic initiatives. Piper Sandler reaffirmed its Overweight rating on Allogene, highlighting the potential of the company's CAR-T therapies in autoimmune diseases. The firm also noted the promising data from Schett Lab, showcasing strong results in lupus and two other autoimmune indications. In contrast, Oppenheimer, H.C. Wainwright, and B.Riley adjusted their price targets for Allogene, citing revised market assumptions and operational expenditure. However, all these firms maintain a positive rating on the stock.
Allogene Therapeutics has also expanded its commercial rights for cema-cel to the European Union and the United Kingdom, increasing the potential total addressable market to over $9.5 billion. The company is set to begin the ALPHA3 pivotal trial for cema-cel in mid-2024, aimed at establishing the drug as a consolidation therapy for MRD+ LBCL patients. Additionally, Allogene recently raised approximately $110 million in funding, extending the company's cash runway through 2026.
These recent developments in Allogene's strategic initiatives, clinical trials, and financial standing have elicited varied perspectives from analysts, with ratings ranging from "Market Perform" to "Outperform." These analyst notes and the company's ongoing activities provide valuable insights for investors considering Allogene Therapeutics.
InvestingPro Insights
Amidst insider transactions, Allogene Therapeutics (NASDAQ:ALLO) presents a mixed financial picture. With a market capitalization of $509.43 million, the company's financial health and stock performance show some noteworthy trends. Notably, Allogene holds more cash than debt on its balance sheet, which could be a sign of financial prudence. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong position to cover immediate liabilities.
However, the company's growth and profitability metrics indicate some challenges. Allogene has experienced a decline in revenue over the last twelve months as of Q1 2024, with a decrease of 30.4%. This is coupled with a significant gross profit margin deficit of -246951.72%, reflecting substantial costs relative to its revenue. Moreover, analysts do not anticipate Allogene will be profitable this year, and the stock has suffered a substantial hit, with a price total return of -53.64% over the past year.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available for Allogene Therapeutics, including insights on earnings revisions and the company's valuation multiples. With the PRONEWS24 coupon code, investors can access these tips and gain an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. Allogene, as a niche player in the biotechnology industry, has unique dynamics that these tips could help unpack.
Understanding these financial metrics and the context of insider sales can provide investors with a more comprehensive view of Allogene's current standing and future prospects.
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