Opaleye Management Inc., a significant shareholder in Protara Therapeutics, Inc. (NASDAQ:TARA), has recently sold a portion of its holdings in the biopharmaceutical company. According to the latest filings, the investment manager sold shares worth approximately $567,000.
The transactions took place on two separate dates, with the first batch of 30,600 shares sold at an average price of $3.0891 on May 9, 2024. The following day, Opaleye Management offloaded an additional 151,700 shares at an average price of $3.1142. The sales were executed within a price range of $3.00 to $3.20 for the combined total of shares.
After these transactions, Opaleye Management's holdings in Protara Therapeutics decreased, yet they still maintain a significant stake in the company. The sales were conducted indirectly by Opaleye, L.P., for which Opaleye Management Inc. serves as the investment manager. This relationship indicates that the investment firm may be deemed to beneficially own the securities directly held by the fund.
Investors tracking insider transactions often consider such sales as a potential signal regarding the company's financial health and future prospects. However, the reasons behind Opaleye Management's decision to reduce its position in Protara Therapeutics at this time are not disclosed in the filing.
Protara Therapeutics, which operates in the biological products space, has not commented on the transactions. The sale details and remaining ownership stakes are now publicly accessible for shareholders and market watchers to review.
InvestingPro Insights
Protara Therapeutics, Inc. (NASDAQ:TARA) has been navigating a complex financial landscape, as highlighted by recent activity from significant shareholder Opaleye Management Inc. InvestingPro data underscores the company's market position with a relatively modest market capitalization of $61.74 million. Despite a notable six-month price uptick of 152.1%, the company's P/E ratio stands at -0.78, reflecting challenges in achieving profitability. In fact, Protara's adjusted P/E ratio for the last twelve months as of Q1 2024 has further declined to -1.44, signaling ongoing concerns about its earnings outlook.
Two InvestingPro Tips shed light on Protara's financial health and market expectations. Firstly, Protara holds more cash than debt on its balance sheet, which is a positive sign of liquidity. Secondly, analysts have revised their earnings upwards for the upcoming period, indicating a potential improvement in the company's financial trajectory. However, it's important to note that the same analysts do not anticipate Protara will be profitable this year, and the company is quickly burning through its cash reserves with weak gross profit margins.
For investors considering a deeper dive into Protara Therapeutics' financials and future prospects, InvestingPro offers additional insights. There are more tips available on the platform, including the company's liquid assets in relation to short term obligations and detailed analysis of its earnings performance. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to a wealth of expert financial analysis and metrics that could guide investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.