Opaleye Management Inc., a significant shareholder in Codexis , Inc. (NASDAQ:CDXS), has bolstered its position in the company with a series of recent stock purchases totaling over $3.3 million. These transactions, which took place on September 20 and 23, 2024, demonstrate the investment firm's continuing commitment to Codexis, a leader in the industrial organic chemicals sector.
The acquisitions were made at prices ranging from $2.9441 to $3.01 per share, indicating a strategic move by Opaleye Management to increase its stake at a favorable price range. On September 20, the firm purchased 1,010,000 shares at an average price of $3.01, followed by an additional 45,000 shares at the same average price. The buying spree continued on September 23 with 45,000 more shares acquired at an average price of $2.9441.
Following these transactions, Opaleye Management's holdings in Codexis have significantly increased. The firm now owns 8,435,000 shares directly through Opaleye, L.P. and an additional 250,000 shares through a managed account. As the investment manager and portfolio manager, respectively, Opaleye Management Inc. may be deemed to beneficially own the securities owned directly by both entities.
The sizable investment underscores the confidence Opaleye Management has in Codexis and its business prospects. Investors and market watchers often look to such transactions as a signal of an insider's belief in the company's future performance.
Opaleye Management Inc. has clarified that it disclaims beneficial ownership of the reported shares except to the extent of its pecuniary interest. The firm has also stated that this Form 4 filing should not be viewed as an admission of beneficial ownership for any regulatory or legal purposes.
The recent acquisitions by Opaleye Management Inc. are now part of the public record, providing transparency to the market and allowing shareholders and potential investors to observe the actions of significant stakeholders in Codexis.
In other recent news, Codexis Inc. reported its second quarter 2024 results, which were in line with expectations. The company's guidance for the full year 2024 was also reaffirmed, indicating a strong fourth quarter and potential cash flow positivity by 2026. Analyst firm Piper Sandler maintained its Overweight rating on Codexis following these results.
Codexis' recent developments include the successful commercialization of its dsRNA ligase program and the expansion of its dsRNA ligase screening service. The company has also strategically shifted its focus towards the production of RNAi therapeutics via its proprietary ECO Synthesis platform.
In addition, Codexis reported Q2 revenues of $8 million and aims for double-digit product revenue growth in 2024. The company's progress is further bolstered by a robust cash and investment balance of $73.2 million. These recent developments highlight Codexis' steady growth and strategic focus on siRNA therapeutics.
InvestingPro Insights
As Opaleye Management Inc. increases its stake in Codexis, Inc. (NASDAQ:CDXS), real-time data and analytical insights from InvestingPro provide a deeper understanding of the company’s financial health and market performance. Codexis, a key player in the industrial organic chemicals sector, has a market capitalization of $208.53 million, reflecting its size and market value within the industry.
InvestingPro data shows that Codexis has experienced a significant return over the last year, with a 98.72% one-year price total return as of the latest data. This impressive performance suggests a strong market confidence in the company, potentially aligning with Opaleye Management's investment strategy. However, the company is not without its challenges. The latest metrics indicate a revenue decline of 38.59% in the last twelve months as of Q2 2024, and a gross profit margin at a negative 0.15%, signaling current operational difficulties in generating profit from its revenues.
InvestingPro Tips highlight that Codexis holds more cash than debt on its balance sheet, which can offer some financial stability and flexibility. On the other hand, analysts have revised their earnings expectations downwards for the upcoming period, which could be a point of concern for investors. Notably, the company is not expected to be profitable this year, and it does not pay a dividend to shareholders, which might affect investor decisions regarding long-term holdings.
For those seeking additional insights, InvestingPro offers a variety of tips on Codexis, including information on stock price volatility and liquidity. There are 11 further InvestingPro Tips available, providing a comprehensive overview of the company's financial standing and future outlook. These tips can be accessed through the dedicated InvestingPro platform for Codexis at https://www.investing.com/pro/CDXS.
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