Applied Therapeutics, Inc. (NASDAQ:APLT) Chief Financial Officer Leslie D. Funtleyder has recently sold a portion of his company shares, primarily to satisfy tax withholding obligations. On June 6, 2024, Funtleyder sold 16,980 shares of common stock at a price of $4.32 per share, amounting to a total of $73,353.
The transaction was executed to cover tax liabilities associated with the vesting of restricted stock units, a common practice among executives receiving equity-based compensation. Following the sale, Funtleyder's remaining direct ownership in the company stands at 291,441 shares of common stock.
Investors often track insider sales as they can provide insights into an executive's view of the company's future prospects. However, it's important to note that sales made to satisfy tax obligations, such as this one, are typically pre-planned and do not necessarily reflect a change in the executive's confidence in the company.
Applied Therapeutics, located in New York, operates in the pharmaceutical preparations industry and focuses on developing transformative drugs for patients with severe and life-threatening diseases. The company's stock is publicly traded, and insider transactions are closely watched by investors seeking to understand the actions of company executives and their potential implications.
The sale was disclosed in a Form 4 filing with the Securities and Exchange Commission, with the signature of Shoshana Shendelman, as attorney-in-fact, dated June 10, 2024.
In other recent news, Applied Therapeutics has experienced significant developments. The company appointed Dale Hooks as the new Chief Commercial Officer, bringing over three decades of experience in the biopharmaceutical industry, particularly in rare disease marketing and sales. This change in leadership comes as Applied Therapeutics anticipates the potential approval and launch of its lead drug candidate, govorestat.
Additionally, the company revealed comprehensive results from its Phase 3 ARISE-HF study, which evaluated AT-001, an investigational treatment for Diabetic Cardiomyopathy. The study found that AT-001 significantly prevented the progression to overt heart failure compared to a placebo in patients with Diabetic Cardiomyopathy.
In regulatory news, the U.S. Food and Drug Administration extended its review of the New Drug Application for govorestat, a treatment for Classic Galactosemia, by three months. Despite the delay, Applied Therapeutics remains confident in the potential approval of govorestat.
RBC Capital Markets initiated coverage on shares of Applied Therapeutics, bestowing an Outperform rating. The firm's confidence is rooted in the potential success of Applied Therapeutics' lead drug, govorestat, which targets orphan diseases such as galactosemia and SORD deficiency. RBC Capital sees further growth potential for Applied Therapeutics, supported by the substantial revenue opportunity estimated to exceed $650 million at peak sales for govorestat.
InvestingPro Insights
As investors scrutinize the insider sale by Applied Therapeutics' CFO, Leslie D. Funtleyder, it's crucial to consider the broader financial context of the company, which can be illuminated by recent data and analysis from InvestingPro. Applied Therapeutics' market cap stands at a modest $587.91 million, reflecting investor valuation of the company amidst its ongoing projects and market performance.
An interesting metric to note is the company's significant price total return over the last year, recorded at 217.69%. This impressive return may signal robust investor confidence or reaction to specific company milestones, despite the lack of profitability in the last twelve months. Additionally, the stock has experienced a large price uptick over the last six months, with a 50.16% return, aligning with the CFO's sale at a price of $4.32 per share.
InvestingPro Tips highlight that while Applied Therapeutics holds more cash than debt on its balance sheet, a strong liquidity position, analysts are anticipating a sales decline in the current year, and they do not expect the company to be profitable within this timeframe. These insights, combined with the fact that the stock is trading at a high Price / Book multiple of 8.68, could suggest that the company is valued more for its potential than its current earnings.
For investors looking to delve deeper into Applied Therapeutics' financial health and future prospects, additional InvestingPro Tips are available. There are currently 11 more tips on InvestingPro that could provide further clarity on the company's trajectory. To explore these insights, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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