In a recent move, Joseph Benesch, the Chief Financial Officer (CFO) of Journey Medical Corp (NASDAQ:DERM), has sold shares of the company's common stock. The transaction, which took place on July 23, 2024, involved the sale of 4,055 shares at a price of $5.40 per share, totaling approximately $21,897.
The shares were sold as part of an automated process to satisfy tax withholding obligations related to the vesting of restricted stock units. According to the details provided, Benesch did not exercise discretion over the sale—it was executed in accordance with the company's policies regarding the vesting of such units.
Investors might note that the sale occurred through a broker-dealer with the weighted average sale price set at $5.40. However, the transactions were carried out at varying prices within a narrow range, specifically from $5.40 to $5.43. The company's filing indicates that Benesch is willing to provide full information on the number of shares sold at each price upon request by the Securities Exchange Commission staff, Journey Medical Corp, or any shareholder of the issuer.
Post-transaction, Benesch retains ownership of 56,655 shares in Journey Medical Corp, which includes restricted stock units that are set to vest over different time periods.
Journey Medical Corp, headquartered in Scottsdale, Arizona, operates in the pharmaceutical preparations industry and is incorporated in Delaware. The company is known for its focus on dermatology and skin health.
In other recent news, Journey Medical Corp. has been making significant strides in its operations. The firm's revenue saw a 7% increase, hitting $13 million in the first quarter of 2024, driven by robust sales of dermatology products Qbrexza and Accutane. Additionally, the company has demonstrated financial efficiency with strategic cost-cutting measures leading to profitability as revenues surpassed SG&A expenses.
Journey Medical has also received a positive assessment from Roth/MKM, which resumed coverage on the company's stock, assigning a Buy rating based on the potential of DFD-29, an oral treatment for rosacea. The firm anticipates that the successful launch and sales of DFD-29 will drive Journey Medical to profitability by 2025.
Moreover, the company is preparing for the launch of DFD-29 following positive results in Phase 3 trials. This new therapy is expected to secure a considerable market share upon approval. These recent developments indicate a company that is not only growing but also strategically positioning itself for future success.
InvestingPro Insights
Investors following the recent share sale by Journey Medical Corp's CFO might be interested in the broader financial context of the company, as provided by InvestingPro. According to InvestingPro data, Journey Medical Corp has a market capitalization of $109.47 million and has experienced a notable revenue growth of 27.82% over the last twelve months as of Q1 2024. This growth is further reflected in the company's gross profit margin, which stands at an impressive 66.22%.
Despite not paying dividends, Journey Medical Corp has provided a strong return over the last three months, with a 54.52% increase in share price. Additionally, the company's share price has surged by 200.55% over the last year, signaling robust investor confidence. These figures underscore the company's performance in the market, despite the CFO's recent share sale.
Journey Medical Corp operates with a moderate level of debt and has been trading at high valuation multiples, with a Price / Book multiple of 8.47 as of the last twelve months leading up to Q1 2024. While analysts anticipate a sales decline in the current year, the company's recent performance could be a beacon for potential investors looking for growth opportunities in the pharmaceutical preparations industry.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can be accessed through the company's profile on InvestingPro. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing them with valuable insights to inform their investment decisions.
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