In a recent transaction, James H. Mackaness, the Chief Financial Officer of Soleno Therapeutics Inc. (NASDAQ:SLNO), sold a significant amount of company stock, totaling over $399,000. The sales occurred on October 1, 2024, with prices per share ranging between $49.34 and $50.25.
The transactions were executed in multiple trades, with the weighted average sale prices reported at $49.34 for 7,248 shares and $50.25 for 829 shares. Following these sales, Mackaness' ownership in Soleno Therapeutics stands at 119,172 shares of common stock, which includes certain shares that are in the form of restricted stock units (RSUs). These RSUs represent a contingent right to receive shares of common stock, subject to vesting schedules and conditions.
The sales were made to cover tax withholding obligations related to the vesting of RSUs, as noted in the footnotes of the filing. This is a common practice among executives, where a portion of the shares that vest are sold to satisfy tax liabilities.
Investors and followers of Soleno Therapeutics will be interested in these transactions as they provide insights into the actions of the company's top executives. The sale of stock by a CFO can be interpreted in various ways, but without additional context, it is simply a transaction that reflects the executive's personal financial decisions.
Soleno Therapeutics, incorporated in Delaware and headquartered in Redwood (NYSE:RWT) City, California, operates in the electromedical and electrotherapeutic apparatus sector. The company, formerly known as Capnia, Inc., continues to develop its business and product lines within the medical device industry.
In other recent news, Soleno Therapeutics has been the subject of several analyst actions and significant developments. Stifel has raised its price target for the company to $74, maintaining a Buy rating, due to the potential approval of Soleno's diazoxide choline controlled-release (DCCR) treatment. The firm's analysts anticipate an increased uptake and market longevity for DCCR in the treatment of Prader-Willi Syndrome (PWS), leading to the raised target price.
Piper Sandler, on the other hand, reiterated its Overweight rating on Soleno Therapeutics, with a price target of $93.00, based on the anticipated favorable outcome for DCCR. H.C. Wainwright initiated coverage with a Buy rating and a 12-month price target of $70 per share, while Oppenheimer reiterated an Outperform rating with a price target of $65.00, citing DCCR's market potential.
The U.S. Food and Drug Administration (FDA) has accepted Soleno's New Drug Application (NDA) for DCCR, a potential treatment for Prader-Willi syndrome, and granted it Priority Review status. The company has also witnessed changes in its Board of Directors, and has entered an agreement with Jefferies LLC to potentially sell up to $150 million of its common stock. Soleno Therapeutics has also awarded performance-based restricted stock units to its employees, aligning their interests with the company's performance. These are among the recent developments for the company.
InvestingPro Insights
To provide additional context to James H. Mackaness's stock sale, it's worth examining some key financial metrics and insights from InvestingPro.
Soleno Therapeutics (NASDAQ:SLNO) has demonstrated impressive market performance, with a one-year price total return of 91.51% as of the latest data. This strong return aligns with one of the InvestingPro Tips, which highlights the company's high return over the last year. Additionally, the stock has shown a robust 16.46% return over the past three months, further supporting the tip about strong recent performance.
Despite these positive indicators, it's important to note that Soleno Therapeutics is not currently profitable. The company reported an adjusted operating income of -$68.5 million for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip, which indicates that the company has not been profitable over the last twelve months.
However, analysts are optimistic about Soleno's future profitability. An InvestingPro Tip suggests that the company's net income is expected to grow this year, and analysts predict it will become profitable. This forward-looking perspective might explain why the stock is trading at a high Price/Book multiple of 6.78, reflecting investor expectations of future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Soleno Therapeutics, providing a deeper understanding of the company's financial health and market position.
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