In a recent move that signals confidence in Nexgel, Inc. (OTCMKTS:NXGL), Director Jerome B. Zeldis has purchased $25,000 worth of company stock. The transaction, which took place on August 23, 2024, involved the acquisition of 10,000 shares at a price of $2.50 per share.
This purchase follows Nexgel's registered direct offering and is part of an agreement that includes a 180-day lock-up period where Zeldis has committed not to sell any of the purchased shares. This lock-up period, which extends until late February 2025, is a common practice in such offerings, aimed at demonstrating the insiders' commitment to the company's future.
Nexgel, known for its expertise in surgical and medical instruments and apparatus, has seen its stock being actively traded by insiders, which often garners the attention of investors looking for signs of a company's health and prospects.
Investors and market watchers typically view insider purchases as a positive indicator, as they may suggest that those with the most knowledge of the company anticipate that the stock will perform well in the future. With Director Zeldis's recent purchase, stakeholders may be keen to watch Nexgel's performance in the coming months, particularly as the lock-up period comes to an end.
As a director of the company, Zeldis's actions are closely watched, and this recent purchase is no exception. It's a statement of belief in the company's value and potential from someone with an intimate understanding of its operations and strategic direction.
For investors keeping an eye on insider transactions, Nexgel's latest SEC filings provide a detailed account of these recent stock movements, offering insights into the confidence levels of key company figures.
In other recent news, NEXGEL reported a 23.4% year-over-year increase in revenue, amounting to $1.44 million for Q2 2024. This growth is largely attributed to the strong performance of its Branded Consumer Products, notably the Silly George brand, and the expansion of its Texas manufacturing facility. Despite the revenue growth, NEXGEL faced a net loss of $979,000 for the quarter.
The company also completed a $1.11 million financing round and has entered into a supply agreement with Cintas Corporation (NASDAQ:CTAS), which is expected to contribute to future revenues. NEXGEL's Q3 and Q4 revenues are projected to be $2.2 million and $2.6 million, respectively. Additionally, revenue from a partnership with AbbVie (NYSE:ABBV) is anticipated to start in Q1 2025.
However, it's important to note that the company's increased spending on advertising and marketing led to higher selling, general, and administrative expenses. This development, coupled with the reported net loss for Q2, indicates challenges in achieving profitability despite revenue growth.
Looking ahead, NEXGEL expects a revenue increase in the second half of the year, driven by consumer products. The company also anticipates significant revenue and reorders from the Cintas agreement starting in Q4. The partnership with AbbVie is projected to ramp up in Q2 2025, leading to a full launch in Q3.
InvestingPro Insights
Nexgel, Inc. (OTCMKTS:NXGL) has recently been the subject of insider stock purchases, a move that often sparks investor interest. In light of Director Jerome B. Zeldis's acquisition of shares, real-time data from InvestingPro provides additional context to the company's financial situation and performance.
InvestingPro Data indicates that Nexgel has a market capitalization of $18.95 million and a negative P/E ratio of -4.61, reflecting the company's current lack of profitability. Despite this, the company has experienced a significant revenue growth of 74.04% over the last twelve months as of Q2 2024, underscoring a robust expansion in its business operations. However, it's important to note that the company operates with a moderate level of debt, which is a critical factor for investors to consider.
One of the InvestingPro Tips highlights that analysts do not expect Nexgel to be profitable this year, which aligns with the company's negative earnings per share (EPS) of -$0.57. Moreover, Nexgel does not pay a dividend, which may influence the investment strategy of income-focused shareholders. On a more positive note, the company has shown a strong return over the last three months, with a price total return of 29.05%, potentially indicating a bullish trend in its stock performance.
For investors seeking more insights, there are additional InvestingPro Tips available, which can be accessed through the Nexgel InvestingPro page at https://www.investing.com/pro/NXGL. These tips could provide further clarity on the company's financial health and future outlook, helping investors make more informed decisions.
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