Investors following Akebia Therapeutics, Inc. (NASDAQ:AKBA) would be interested to learn that the company's Senior Vice President and Chief Operating Officer, Michel Dahan, has recently sold shares in the company. The transaction, which took place on May 13, 2024, involved the sale of 34,840 shares at a price of $1.26 per share, resulting in a total sale value of approximately $43,898.
The sale was executed automatically to cover tax withholding obligations related to the vesting of restricted stock units granted to Dahan a year prior, on May 12, 2023. Additionally, it's noteworthy that the sale was made pursuant to a pre-arranged Rule 10b5-1 trading plan, which Dahan had adopted on December 3, 2023. Rule 10b5-1 trading plans are commonly used by corporate insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
After the sale, Michel Dahan still owns a substantial number of shares in Akebia Therapeutics, totaling 672,092 shares. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, with the signature of Carolyn Rucci, attorney-in-fact for Michel Dahan, dated May 14, 2024.
Akebia Therapeutics, based in Cambridge, Massachusetts, is a biopharmaceutical company focused on the development and commercialization of therapeutics for patients with kidney disease and other serious conditions. As with any stock transactions made by company executives, investors and analysts often review such sales for insights into the company's financial health and the executives' perspectives on the company's future prospects.
InvestingPro Insights
Akebia Therapeutics, Inc. (NASDAQ:AKBA) has been navigating a challenging period, as reflected in some key metrics provided by InvestingPro. The company's market capitalization stands at $257.53 million, indicating its size within the biopharmaceutical sector. Moreover, recent data shows that Akebia has experienced a significant sales decline, with revenue dropping by 30.92% over the last twelve months as of Q1 2024, and a quarterly revenue decline of 18.74% in Q1 2024. This trend aligns with one of the InvestingPro Tips that analysts anticipate a sales decline in the current year.
Despite a gross profit margin of 83.27%, Akebia's operating income margin reveals challenges, with the company recording an operating income margin of -18.1% for the same period. Furthermore, the company's stock has seen volatility, with a large price uptick of 25.24% over the last six months, yet it has taken a hit over the last week with a price total return of -7.86%. These data points may be of particular interest to investors following the insider sale by the company's Senior Vice President and Chief Operating Officer, Michel Dahan.
Two InvestingPro Tips worth noting for Akebia Therapeutics are the high shareholder yield and the fact that the company does not pay a dividend to shareholders. These insights may help investors understand the potential for shareholder returns and the company's approach to capital allocation. For those looking for more comprehensive analysis and additional tips, InvestingPro offers more insights, with a total of 8 additional tips available at https://www.investing.com/pro/AKBA. To access these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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