Aadi Bioscience, Inc. (NASDAQ:AADI) has reported a series of stock sales by Executive Chairman Neil Desai, according to a recent SEC filing. Over a span of several days, Desai sold a total of 40,000 shares of the company's common stock, accumulating over $57,000 in proceeds.
The transactions, which occurred between August 1 and August 5, 2024, were carried out under a Rule 10b5-1 trading plan, a mechanism that allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The sales were executed at varying prices, with the weighted average share price ranging from $1.3437 to $1.4956.
On August 1, Desai sold 15,415 shares at a weighted average price of $1.4956, within a price range of $1.47 to $1.53. The following day, 18,933 shares were sold at an average price of $1.4105, with individual sales prices ranging from $1.38 to $1.47. The final batch of sales on August 5 comprised 5,652 shares at a weighted average price of $1.3437, between $1.31 to $1.38 per share.
Following these transactions, Desai's ownership in Aadi Bioscience includes indirect holdings through the Anishka Family Trust, for which he is a trustee. The trust held 1,211,543 shares after the sales were completed. Additionally, Desai disclaims beneficial ownership of the shares held by the Anishka Irrevocable 2016 Trust, except to the extent of any pecuniary interest therein.
The recent filing with the SEC provides transparency into the trading activities of Aadi Bioscience's executives, offering investors a glimpse into insider stock movements. These disclosures are part of routine financial reporting requirements for publicly traded companies.
In other recent news, Aadi Bioscience disclosed the results from its annual stockholders meeting, where two Class I directors, Caley Castelein, M.D., and Neil Desai, Ph.D., were elected to serve until 2027. The company also ratified the appointment of BDO USA LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024. In financial updates, Aadi Bioscience reported a decline in Q1 net product sales for FYARRO, but anticipates a resurgence in the following quarter. The company's financial standing remains robust, with $88.3 million in cash, cash equivalents, and short-term investments. In trial updates, the PRECISION1 trial for nab-sirolimus, targeting solid tumors with specific genetic alterations, has reached full enrollment. The company also terminated its collaboration with Mirati to focus on nab-sirolimus evaluation. Phase II trials for nab-sirolimus in endometrial cancer and neuroendocrine tumors are progressing, with initial data expected later this year. These are some of the recent developments concerning Aadi Bioscience.
InvestingPro Insights
As Aadi Bioscience, Inc. (NASDAQ:AADI) navigates through a period marked by insider stock sales, investors may find it valuable to consider the company's financial health and market performance. According to InvestingPro data, Aadi Bioscience holds a market capitalization of approximately $33.76 million. The company's revenue for the last twelve months as of Q1 2024 stands at $23.84 million, reflecting a growth of nearly 27%. However, it's important to note that Aadi Bioscience has experienced a gross profit margin of -128.6%, indicating that the company is spending more to produce its goods than it is earning from sales.
InvestingPro Tips suggest that while Aadi Bioscience holds more cash than debt on its balance sheet, it is quickly burning through cash with analysts revising their earnings downwards for the upcoming period. This could be a cause for concern for potential investors. Additionally, the company's stock has taken a significant hit over the last week, with a price total return of -13.21%, and has seen a substantial decline of -75.92% over the past year. This performance aligns with the executive chairman's recent stock sales, possibly reflecting broader market sentiment.
For those interested in a deeper analysis of Aadi Bioscience, InvestingPro offers additional insights. There are currently 10 more InvestingPro Tips available, which can be accessed on the InvestingPro platform for a comprehensive understanding of the company's financial position and future outlook.
Investors may also want to consider the company's valuation metrics, such as the negative P/E ratio of -0.54, which suggests that the market is not expecting earnings growth in the near future. With the next earnings date set for August 7, 2024, market participants will be keenly awaiting further details that might clarify the company's trajectory.
Lastly, Aadi Bioscience does not pay a dividend, which may influence the investment decisions of those seeking regular income from their holdings. As the company's financial landscape evolves, staying informed with the latest data and expert analysis from InvestingPro could be crucial for making educated investment choices.
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