Fulgent Genetics, Inc. (NASDAQ:FLGT) has reported in a recent SEC filing that its Chief Executive Officer, Hsieh Ming, sold a total of 2,313 shares of the company's common stock. The transaction, dated August 27, 2024, involved shares sold at prices ranging from $22.72 to $22.915, with a weighted-average sale price of $22.833, culminating in a total sale value of over $52,812.
The sale was conducted to satisfy tax withholding obligations related to the vesting of certain restricted stock units granted to Hsieh on February 23, 2023. Following the sale, Hsieh still holds a substantial number of shares directly and indirectly through trusts and custodial accounts for minors.
Specifically, Hsieh's direct holdings amount to 707,275 shares after the transaction. In addition, the SEC filing disclosed indirect holdings through various trusts. The Dynasty Trust, where Hsieh disclaims any beneficial interest except for any pecuniary interest, holds 220,816 shares. The Ming Hsieh Trust, which is under Hsieh's trusteeship, holds a significant 7,895,115 shares. Additionally, two Uniform Transfers to Minors Act accounts, for which Hsieh acts as custodian, each hold 1,000 shares.
The reported transactions provide investors with a glimpse into the trading activity of Fulgent Genetics' top executive and may be of interest to current and prospective shareholders. The company, which specializes in medical laboratory services, has its shares publicly traded and continues to be a subject of investor attention.
In other recent news, Fulgent Genetics has released its second-quarter earnings for 2024, reporting total revenues of $71 million. This figure marks an increase from the previous year's $67.9 million, with a notable portion of the revenue, $70.2 million, coming from non-COVID-19 related services, particularly precision diagnosis in reproductive health and oncology. With a strong cash position of $838 million, Fulgent Genetics maintains a positive outlook for future growth, underlined by the expansion of its laboratory facilities and progression of therapeutic development programs.
In the realm of therapeutic development, the company's lead drug candidate, FID-007, has shown promising Phase 1 clinical data for treating head and neck cancer. Fulgent Genetics has initiated a Phase 2 trial for FID-007 and is making progress with its second candidate, FID-022. The company's laboratory service business experienced growth in precision diagnostics, anatomic pathology, and biopharma services.
In other developments, Fulgent Genetics received MolDX approval for its liquid biopsy assay and relocated its anatomic pathology operation to Texas. The company also reiterated its 2024 revenue outlook, expecting to generate approximately $280 million in core revenues. However, it is important to note that a federal lawsuit is currently challenging the FDA's authority to announce new regulations on lab-developed tests, which could potentially impact Fulgent Genetics' operations.
InvestingPro Insights
Fulgent Genetics, Inc. (NASDAQ:FLGT) has been navigating a challenging market environment, as reflected in the company's recent financial metrics. With a market capitalization of approximately $699.85 million, Fulgent Genetics is positioned in a unique spot within the medical laboratory services sector. Notably, the company holds more cash than debt on its balance sheet, an InvestingPro Tip that highlights its financial stability in uncertain economic times. Furthermore, Fulgent Genetics' management has demonstrated confidence in the company's future, with aggressive share buybacks as another InvestingPro Tip indicates.
On the financial front, Fulgent Genetics has reported a revenue of $290.7 million over the last twelve months as of Q2 2024. Despite a slight dip in revenue growth by -5.42% during the same period, the company managed to maintain a gross profit margin of 39.1%, showcasing its ability to retain profitability in core operations. Nevertheless, analysts have expressed concerns, as reflected in an InvestingPro Tip, by not expecting the company to be profitable this year. This is further substantiated by the company's negative P/E ratio of -4.23, indicating that investors are not currently expecting earnings growth.
For investors seeking more detailed analysis and additional insights, there are more InvestingPro Tips available, which can be accessed by visiting the dedicated Fulgent Genetics page on InvestingPro. These tips may provide a deeper understanding of the company's financial health and future prospects.
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