Establishment Labs Holdings Inc . (NASDAQ:ESTA) CEO Juan Jose Chacon Quiros sold a total of 4,520 shares of the company's stock in two separate transactions dated July 8 and July 9, according to recent SEC filings. The total value of the shares sold amounted to approximately $203,442, with share prices ranging from $45.0008 to $45.0108.
The first transaction on July 8 involved the sale of 3,866 shares at a weighted average price of $45.0108, while the second sale on July 9 saw 654 shares being sold at an average price of $45.0008. These sales were carried out under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specified time.
Following the transactions, CEO Chacon Quiros still holds 214,376 shares of Establishment Labs directly. Additionally, the filings indicate an indirect holding of 1,128,264 shares through Sariel LLC, a shareholder entity over which Chacon Quiros has voting and dispositive power. However, he disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest therein.
The recent sales by the CEO represent a change in his stake in the medical device company, known for its development and manufacture of innovative products within the aesthetic and reconstructive markets. Investors and the market often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation and future prospects.
In other recent news, Establishment Labs Holdings Inc. has witnessed several developments of note. Mizuho Securities has raised its price target for Establishment Labs to $70, following the U.S. Food and Drug Administration's (FDA) review of the pre-market approval application for the company's Motiva implants, signaling an approvable status contingent on a successful inspection of its manufacturing facilities. This event has led to revised estimates, indicating possible FDA clearance by August 2024.
Establishment Labs has also reported an increase in revenue for the first quarter of 2024, reaching $37.2 million. The company's adjusted EBITDA loss decreased to less than $4 million, down from $17 million. Furthermore, Establishment Labs has launched its Motiva implants in China and Flora tissue expanders in the U.S, expanding its market presence.
In addition, Jeff Ehrhardt has been appointed to lead the North American business. However, the company reported a net loss of $22.7 million for the first quarter. Despite this, Establishment Labs projects a revenue guidance for 2024 to be between $174 million to $184 million, with the aim to achieve positive adjusted EBITDA by the end of 2024 and positive cash flow by the end of 2025.
InvestingPro Insights
In light of the recent insider sales at Establishment Labs Holdings Inc. (NASDAQ:ESTA), investors may be keen to understand the broader financial context in which these transactions occur. According to InvestingPro data, Establishment Labs has a market capitalization of $1.19 billion and has been experiencing significant price volatility. The company's Price / Book ratio as of the last twelve months stands at a high 20.94, suggesting a premium valuation compared to book value. Moreover, the company has faced a revenue decline of 8.23% over the last twelve months as of Q1 2024, reflecting potential challenges in its business operations.
InvestingPro Tips highlight several critical points for investors' consideration. Analysts have recently revised their earnings expectations downwards for the upcoming period, indicating potential hurdles ahead. Furthermore, analysts do not predict profitability for Establishment Labs this year, which is consistent with the company's negative P/E Ratio of -13.88, suggesting that it is not generating net income currently. However, it's worth noting that the company's liquid assets exceed its short-term obligations, providing some financial stability.
For investors seeking to delve deeper into the financial intricacies of Establishment Labs, InvestingPro offers additional insights and tips. There are six more InvestingPro Tips available for ESTA, which could provide a more comprehensive understanding of the company's financial health and future outlook. Interested readers can explore these tips and benefit from real-time metrics by visiting https://www.investing.com/pro/ESTA. Additionally, by using the coupon code PRONEWS24, investors can receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking further valuable investment information.
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