Entero Therapeutics, Inc. (NASDAQ:ENTO) reported a transaction by Chief Financial Officer Sarah Romano, who sold shares in the company. The transaction was executed to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs).
On October 9, 2024, Romano sold a total of 476 shares of Entero Therapeutics common stock at a price of $0.446 per share. The total value of the shares sold amounted to approximately $212. It's important to note that this sale was not a discretionary transaction by the reporting person. Instead, it was a mandated sale as part of the company's "sell to cover" policy to satisfy tax withholding obligations upon the vesting of RSUs.
Following the transaction, Romano's holdings in Entero Therapeutics include both vested and unvested RSUs, with a total of 18,014 shares remaining in her possession. This information provides a glimpse into the financial moves of top executives within Entero Therapeutics, offering investors insight into insider transactions at the company.
In other recent news, Entero Therapeutics has been notified by Nasdaq about non-compliance with the minimum bid price requirement. Despite this, the company's listing remains effective and it has until March 2025 to regain compliance. In other developments, Entero Therapeutics has secured an exclusive global license to use Data Vault's software in its clinical trials and has appointed Machias Gini & O’Connell LLP as its new independent registered public accounting firm.
In leadership changes, Timothy R. Ramdeen has joined the board of directors and Dr. Jack Syage has transitioned to the role of Chief Scientific Officer. Financially, Entero Therapeutics has raised approximately $1.1 million in a registered direct offering and concurrent private placement, managed by Roth Capital Partners.
H.C. Wainwright has reinstated its coverage on Entero Therapeutics, shifting their rating from Under Review to Neutral, following the company's recent acquisition of ImmunogenX. These are the recent developments for Entero Therapeutics.
InvestingPro Insights
To provide additional context to the recent insider transaction at Entero Therapeutics, Inc. (NASDAQ:ENTO), let's examine some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Entero Therapeutics has a market capitalization of $1.31 million, reflecting its current valuation in the market. The company's stock is trading at a low Price to Book ratio of 0.08, which aligns with one of the InvestingPro Tips indicating that the company is "Trading at a low Price / Book multiple." This could suggest that the stock might be undervalued relative to its book value.
Interestingly, despite the overall challenging financial picture, InvestingPro Tips highlight that Entero Therapeutics has seen a "Significant return over the last week," with a 1-week price total return of 20.51%. This recent positive momentum contrasts sharply with the longer-term performance, as the stock has "fallen significantly over the last year," with a 1-year price total return of -93.18%.
It's worth noting that the company is currently not profitable, with a negative EBITDA of -$20.9 million for the last twelve months as of Q1 2024. This aligns with another InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Entero Therapeutics, providing a deeper understanding of the company's financial health and market position.
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