Chromocell Therapeutics Corp (NASDAQ:CHRO) director Richard Malamut recently increased his stake in the company with a purchase of shares valued at approximately $9,824. The transaction, which took place on September 12, 2024, involved the acquisition of 10,400 shares at a weighted average price of $0.9447 per share. The price range for these shares varied from $0.9206 to $0.9554 each.
This latest purchase by Malamut reflects a notable investment in Chromocell Therapeutics, a company that specializes in biological products. Following the transaction, Malamut now holds a total of 91,565 shares of common stock in the company. According to the filing, these shares are jointly held with his spouse.
Chromocell Therapeutics, based in North Brunswick (NYSE:BC), New Jersey, operates within the biological products sector, excluding diagnostic substances. The company's shares are traded under the ticker symbol CHRO on the NASDAQ stock exchange.
The transaction was signed off by Francis Knuettel II, under a Power of Attorney from Richard Malamut, dated August 1, 2023. Investors often monitor insider buying and selling activities as they can provide insights into a company's financial health and future prospects. The recent acquisition by Malamut may be interpreted by investors as a positive sign of his confidence in the company's direction and potential for growth.
In other recent news, Chromocell Therapeutics Corporation has revealed a plan to repurchase up to $250,000 of its common stock, which comprises about 23% of the company's non-affiliate float. This initiative does not necessitate a specific number of shares to be acquired and may be adjusted, paused, or terminated at any time by the board. CEO Frank Knuettel II sees the undervalued stock as a compelling investment, potentially enhancing shareholder value.
In the near future, Chromocell aims to make further announcements highlighting its progress in drug development for neuropathic and chronic pain. The company also plans to use its intellectual property to investigate additional pain treatments, independently or with partners. The repurchases will be carried out sporadically in the open market or through private transactions, adhering to Rule 10b-18 of the Securities Exchange Act of 1934 and other legal requirements. The volume and timing of purchases will be determined by the company's management, considering factors such as stock availability, market conditions, and the company's financial performance. These are some of the recent developments within Chromocell.
InvestingPro Insights
Chromocell Therapeutics Corp (NASDAQ:CHRO) has recently witnessed insider activity that could be a beacon for investors looking for hidden signals in the market. Richard Malamut's purchase of additional shares in the company might be interpreted as a vote of confidence, but a closer look at the company's financials through InvestingPro can provide a more detailed perspective.
InvestingPro data reveals a market capitalization of just $5.34 million for Chromocell Therapeutics, underscoring its position as a micro-cap stock in the biotech sector. The company's financial health is further illustrated by a negative P/E ratio, which stands at -0.3, suggesting that the company is not currently profitable. This is corroborated by a significant gross profit loss of $2.82 million over the last twelve months as of Q2 2024.
Despite the insider buying, InvestingPro Tips highlight some challenges the company faces. Chromocell Therapeutics holds more cash than debt, which can be a positive sign of liquidity, but it suffers from weak gross profit margins. Moreover, analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. The stock price has also taken a significant hit, falling by over 80% from its 52-week high.
However, not all is bleak, as the stock has shown a strong return over the last month, with a 17.15% price total return, which could indicate a potential turnaround or a positive market reaction to recent developments. It's important to note that Chromocell does not pay a dividend, which could influence the investment strategy for income-focused investors.
For investors interested in a deeper dive, there are additional InvestingPro Tips available for Chromocell Therapeutics, which could further inform investment decisions. With these insights, investors can weigh the recent insider buying against broader financial metrics to determine their investment strategy regarding CHRO.
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