In a recent transaction, Juan Jose Chacon Quiros, the Chief Executive Officer of Establishment Labs Holdings Inc . (NASDAQ:ESTA), sold 6,839 shares of the company's stock. The shares were sold at a weighted average price of $45.2954, totaling approximately $309,775.
The transaction, which took place on July 1, 2024, was executed under a pre-arranged trading plan known as a Rule 10b5-1 plan, often used by company insiders to sell shares at predetermined times to avoid any accusations of insider trading based on material non-public information.
According to the filing, the sales were made at varying prices ranging from $45.01 to $46.00 per share. The exact number of shares sold at each price point can be provided upon request, as indicated in the SEC filing's footnotes.
Following the transaction, Chacon Quiros's direct holdings in Establishment Labs amounted to 218,896 common shares. Additionally, an indirect holding of 1,128,264 shares is attributed to Sariel LLC, where Chacon Quiros has voting and dispositive power. However, he disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
Establishment Labs Holdings Inc. is known for its work in the field of orthopedic, prosthetic, and surgical appliances and supplies, and it continues to be a significant player in the industry.
Investors and followers of ESTA will be keeping a close eye on the company's stock performance and any further transactions by its executives.
In other recent news, Establishment Labs Holdings Inc. has seen several notable developments. The U.S. Food and Drug Administration (FDA) has completed its review of the pre-market approval application for the company's Motiva implants, signaling an approvable status contingent on a successful inspection of its manufacturing facilities. This development has led Mizuho Securities to raise its price target on Establishment Labs shares to $70, up from $65, and reaffirm its Buy rating.
Following the expected FDA clearance, Establishment Labs may initiate a soft launch of its Motiva implants as early as September 2024. The company also reported a significant increase in revenue for the first quarter of 2024, reaching $37.2 million, with a decrease in the adjusted EBITDA loss to less than $4 million, down from $17 million. Furthermore, Jeff Ehrhardt was appointed to lead the North American business.
Establishment Labs has launched its Motiva implants in China and Flora tissue expanders in the U.S, expanding its market presence. Despite reporting a net loss of $22.7 million for the first quarter, the company maintains optimism about its growth strategy, with plans to increase gross margins and manage operating expenses. The company aims to achieve positive adjusted EBITDA by the end of 2024 and positive cash flow by the end of 2025.
InvestingPro Insights
As Establishment Labs Holdings Inc. (NASDAQ:ESTA) navigates through the market, recent data from InvestingPro provides a snapshot of the company's financial health and stock performance. With a market capitalization of around $1.2 billion, ESTA's financial metrics reflect a challenging landscape. The company's Price/Earnings (P/E) ratio stands at -13.83, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -14.54, indicating that investors are anticipating negative earnings.
InvestingPro Tips suggest analysts are bearish on the company's profitability in the near term. Four analysts have recently revised their earnings estimates downwards for the upcoming period, and they do not expect the company to be profitable this year. Additionally, the stock has experienced a significant decline over the past three months, falling by 19.02%. Yet, it's worth noting that there has been a large price uptick over the last six months, with a 72.17% return. This volatility may present opportunities for investors who closely monitor market trends.
On the balance sheet front, ESTA has liquid assets that exceed its short-term obligations, which could provide some financial flexibility. However, the company's valuation implies a poor free cash flow yield, and it is trading at a high Price/Book multiple of 21.14. These metrics could be important for investors who are assessing the company's value and growth potential.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available for ESTA at https://www.investing.com/pro/ESTA. Moreover, by using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes comprehensive insights and tips to guide investment decisions.
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