Pliant Therapeutics, Inc. (NASDAQ:PLRX) has reported a significant sale of shares by President and CEO Bernard Coulie. On July 10, 2024, Coulie sold 38,710 shares of common stock at an average price of $11.56 per share, totaling approximately $447,487. The transaction was part of a nondiscretionary sale under a Rule 10b5-1 trading plan, which is often used by company insiders to sell shares at predetermined times and prices to avoid any allegations of insider trading.
The sale was made to cover the withholding tax liability associated with the vesting of performance-vested stock units. According to the filing, the shares were sold at varying prices ranging from $10.785 to $12.58. The exact number of shares sold at each price point within this range is available upon request from Pliant Therapeutics, its security holders, or the SEC staff, as indicated in the footnote of the Form 4 filing.
Following the transaction, CEO Bernard Coulie retains a substantial ownership stake in the company, with 482,936 shares held directly. Additionally, Coulie has an indirect interest in 409,317 shares held by The Coulie/Leyman Family Trust, for which he and his spouse serve as trustees. However, Coulie has disclaimed beneficial ownership of these indirect shares, except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they may provide insights into executives' perspectives on the company's current valuation and future prospects. The recent sale by Pliant Therapeutics' CEO is part of the normal course of equity compensation and tax planning for corporate executives.
In other recent news, Pliant Therapeutics has been the focus of several analyst firms following promising trial results for its investigational drug, bexotegrast. Piper Sandler has maintained an Overweight rating and a $40.00 target for Pliant Therapeutics, citing strong participation at the American Thoracic Society conference and consistent performance of bexotegrast in treating idiopathic pulmonary fibrosis (IPF) and primary sclerosing cholangitis (PSC). The firm also anticipates significant company milestones in the coming years, including the release of 24-week Phase 2a INTEGRIS-PSC data and a meeting with the FDA, both expected in mid-2024.
Oppenheimer has reiterated an Outperform rating and a price target of $48.00, following a study that showed a reduction in lung collagen levels in IPF patients treated with bexotegrast. RBC Capital also maintained an Outperform rating with a steady price target of $45.00, highlighting bexotegrast's consistent activity and safety profile in IPF.
Meanwhile, Stifel reaffirmed its Buy rating on Pliant Therapeutics, noting the positive topline data from an exploratory study that contributed to the ongoing discussions about bexotegrast's potential. The study showed a clear distinction for the 160mg dose of Bexotegrast, one of two doses moving forward into Phase 2b/3 trials.
These developments follow Pliant Therapeutics' announcement of positive topline data from a 12-week trial of bexotegrast for treating IPF, which showed a potential reversal of lung fibrosis and improvements in forced vital capacity and cough severity.
InvestingPro Insights
In the wake of CEO Bernard Coulie's notable share sale, investors looking at Pliant Therapeutics (NASDAQ:PLRX) might find the following InvestingPro Insights particularly relevant. The company has been experiencing a significant return over the last week, with a 21.2% price total return, which could be indicative of market reactions to insider transactions or other company news. Despite this recent uptick, the broader trend shows a decline, with a 6-month price total return of -28.77% and a YTD return of -29.6%, suggesting that the stock has been facing downward pressure over the longer term.
Regarding the company's financial health, an InvestingPro Tip points out that Pliant Therapeutics holds more cash than debt on its balance sheet, which can be a sign of financial stability. However, analysts have also flagged concerns, as evidenced by another InvestingPro Tip indicating that 7 analysts have revised their earnings downwards for the upcoming period. This could reflect skepticism about the company's near-term profitability, as the company is not expected to be profitable this year, and it's trading at a high revenue valuation multiple with a P/E Ratio of -4.44.
For those considering a deeper dive into Pliant Therapeutics' financials and forecasts, InvestingPro offers a wealth of additional tips. There are currently 8 more tips available on InvestingPro, which can be accessed at: https://www.investing.com/pro/PLRX. For those interested in subscribing, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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