Allovir, Inc. (NASDAQ:ALVR) Chief Accounting Officer Brett Hagen has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on May 17, 2024, involved the sale of 541 shares of Allovir's common stock at a weighted average price of $0.7493 per share, totaling over $405.
The sale was reportedly conducted to cover tax withholding obligations related to the vesting of restricted stock units. It was noted that the shares were sold automatically to satisfy these requirements and were not at the discretion of Hagen. The prices at which the shares were sold ranged from $0.74 to $0.7615, which suggests that the transactions occurred in multiple tranches at varying prices.
Following the sale, Hagen's ownership in the company stands at 75,481 shares of common stock. The nature of the ownership is direct, as indicated in the SEC filing.
Allovir, Inc., based in Waltham, Massachusetts, operates in the biotechnology sector and is known for its focus on developing treatments for life-threatening viral diseases. The company, formerly known as ViraCyte, Inc., is incorporated in Delaware and has been listed under the trading symbol ALVR.
Investors often monitor insider transactions as they may provide insights into the executives' perspectives on the company's current valuation and future prospects. However, transactions like this one, which are executed to meet tax obligations, are generally viewed as routine and not necessarily indicative of the executive's outlook on the company's financial health.
The filing did not disclose any further plans for stock transactions by Hagen or other executives of Allovir, Inc. at this time.
InvestingPro Insights
In light of the recent insider stock sale by Allovir, Inc.'s (NASDAQ:ALVR) Chief Accounting Officer Brett Hagen, it's important for investors to consider the broader financial context of the company. According to the latest data from InvestingPro, Allovir holds a market capitalization of approximately $90.27 million. Despite the company's efforts in the biotechnology sector, its financial metrics reflect some challenges. Notably, the company has an adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024 at -0.57, indicating that the company is not currently profitable.
InvestingPro Tips reveal that Allovir is facing weak gross profit margins and is not expected to be profitable this year. Moreover, the stock has experienced a significant decline over the past year, with a price total return of -81.65%. These factors are critical for investors to consider when evaluating the company's stock performance and future potential.
However, it's not all negative for the company; Allovir does hold more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, suggesting a degree of financial stability. For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide a more comprehensive understanding of Allovir's financial position. With a total of 8 tips listed on InvestingPro, investors can gain further insights into the company's financial health and potential investment risks or opportunities.
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