Atara Biotherapeutics, Inc. (NASDAQ:ATRA), a company specializing in biological products, reported that EVP, Global Head RA & Quality, Jill Henrich, has sold a total of 963 shares of common stock. The transactions, which took place on August 16, 2024, resulted in a total sale value exceeding $6,300.
According to the filing, the shares were sold at prices ranging between $6.629 and $6.631. The sale was executed automatically to satisfy tax withholding obligations associated with the vesting of previously granted restricted stock units. This sale-to-cover provision is a common practice in award agreements, allowing automatic share sales to cover tax liabilities upon vesting of restricted stock.
After the sale, Henrich's remaining direct ownership in the company stands at 20,378 shares of common stock. The report also noted that this figure includes 4,284 shares purchased under the company's Employee Stock Purchase Plan earlier in the year and reflects adjustments due to a 1:25 reverse stock split effected by Atara Biotherapeutics on June 20, 2024.
The sale of shares by a high-ranking executive such as Henrich often garners attention from investors, as it may reflect the executive's view on the company's current valuation and future prospects. However, sales related to tax obligations are generally viewed as routine and less indicative of an executive's outlook on the company's performance.
Atara Biotherapeutics continues to focus on the development of novel treatments in various therapeutic areas, with an emphasis on the field of biological products. Investors and market watchers often monitor insider transactions for insights into company health and executive sentiment.
In other recent news, Atara Biotherapeutics has seen several significant developments. Mizuho Securities has upgraded Atara Biotherapeutics from a Neutral to an Outperform rating, despite reducing the stock target price from $25 to $18. This shift reflects the firm's positive outlook on Atara's core T-cell technology, despite the market's lack of enthusiasm following the failure of ATA188 in multiple sclerosis.
The U.S. Food and Drug Administration (FDA) has accepted Atara's Biologics License Application for tabelecleucel (tab-cel®), a therapy designed to treat Epstein-Barr virus positive post-transplant lymphoproliferative disease. The acceptance could lead to a $20 million milestone payment to Atara from Pierre Fabre Laboratories, with an additional $60 million contingent upon FDA approval.
Atara Biotherapeutics has also executed a 1-for-25 reverse stock split, reducing the number of outstanding common shares from approximately 122.6 million to around 4.9 million. This move is aimed at increasing the market price of the company's common stock and meeting the continued listing requirements on The Nasdaq Stock Market LLC.
Moreover, the company has reported encouraging preclinical data on its allogeneic anti-CD19 chimeric antigen receptor (CAR) T-cell therapy candidate, ATA3219. The therapy, designed for the treatment of B-cell driven autoimmune diseases, has shown potent B-cell depletion with a reduced inflammatory profile. Currently, ATA3219 is under investigation in a Phase 1 trial for relapsed/refractory B-cell non-Hodgkin’s lymphoma.
InvestingPro Insights
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) has been navigating a challenging financial landscape, as evidenced by recent data and analysis from InvestingPro. Despite a significant increase in revenue over the last twelve months, the company's financial health raises concerns, with several metrics indicating a difficult period ahead.
InvestingPro Data shows a staggering revenue growth of 809.03% for the last twelve months as of Q2 2024, a testament to the company's ability to generate sales. However, this growth is juxtaposed against a gross profit margin of -201.9%, signaling that the costs of goods sold vastly exceed the revenue, leading to a negative gross profit of -125.96M USD. This situation is further exacerbated by an operating income margin of -276.21%, reflecting substantial operational losses.
Market sentiment around Atara Biotherapeutics has been bearish, with the stock experiencing a significant decline over various time frames, including a 1-year price total return of -80.72%. The stock's price is currently at a mere 14.65% of its 52-week high, with the previous close at 7.19 USD, suggesting investor caution or lack of confidence in the stock's near-term prospects.
Among the InvestingPro Tips, two stand out for their relevance to the current situation of Atara Biotherapeutics. Firstly, analysts do not expect the company to be profitable this year, which aligns with the negative profitability indicators such as the gross profit margin and operating income margin. Secondly, the company is quickly burning through cash, which is a critical concern for a biotech firm that relies heavily on sufficient funding to sustain its research and development activities.
For investors looking for more in-depth analysis, there are additional tips available on InvestingPro, including insights into earnings revisions, stock performance over various periods, and the company's ability to meet short-term obligations. These additional 13 InvestingPro Tips can be found at https://www.investing.com/pro/ATRA, offering a comprehensive view of Atara Biotherapeutics' financial health and market position.
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