Opaleye Management Inc., a significant shareholder in Protara Therapeutics, Inc. (NASDAQ:TARA), has executed sales of the biopharmaceutical company's stock on May 30 and May 31, according to recent filings. The transactions amounted to a total of $44,007, with share prices ranging from $2.9009 to $2.9375.
On May 30, Opaleye Management divested 9,230 shares at a weighted average price of $2.9375, with individual sales prices spanning from $2.90 to $2.98. The following day, the firm continued its selling activity, offloading an additional 5,824 shares at a weighted average of $2.9009, within a narrow price range of $2.9007 to $2.9011.
After these transactions, Opaleye Management's holdings in Protara Therapeutics decreased, yet the firm still maintains a significant stake in the company. The shares sold were held in a managed account, which Opaleye, as the portfolio manager, may be considered to beneficially own.
The recent sales are part of the trading activities that institutional investors regularly engage in, and the details, including the precise number of shares sold at each price point, are available upon request to the SEC, the issuer, or any security holder of the issuer.
Investors tracking insider transactions like these often consider them as signals about the company's prospects and the valuation of its stock. Opaleye's sell-off comes amidst the ongoing trading of Protara Therapeutics' shares on the NASDAQ exchange.
InvestingPro Insights
Amidst the recent sell-off by Opaleye Management, Protara Therapeutics Inc. (NASDAQ:TARA) presents a mixed financial landscape. An analysis using InvestingPro reveals key metrics that investors may find pertinent. The company's market capitalization stands at a modest $57.86 million, reflecting its position within the biopharmaceutical industry. Protara's stock has experienced significant volatility, with a six-month price total return showing a dramatic 100% increase, yet its three-month return indicates a sharp decline of 36.4%. This volatility is further underscored by the stock's price being at 53.05% of its 52-week high.
From a financial health perspective, Protara holds more cash than debt on its balance sheet, which is a positive sign for investors looking for stability in the company's financial structure. Additionally, the company has liquid assets that exceed its short-term obligations, providing some reassurance about its ability to meet immediate financial liabilities.
However, the InvestingPro Tips highlight areas of concern. Analysts have noted Protara's quick cash burn and weak gross profit margins, which could be worrisome for long-term sustainability. Furthermore, the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year. These factors, combined with the stock's price movement volatility, suggest a cautious approach may be warranted.
For investors seeking deeper insights and additional metrics, InvestingPro offers a comprehensive set of InvestingPro Tips on Protara Therapeutics. There are 10 additional tips available, which can be accessed at: https://www.investing.com/pro/TARA. Moreover, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing an even more robust investment analysis toolkit.
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