Pacira BioSciences, Inc. (NASDAQ:PCRX) reported that Director Paul J. Hastings sold 880 shares of the company's common stock on June 13, 2024, for a total transaction value of $24,974. The shares were sold at a price of $28.38 each. This sale was conducted according to a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC), which also noted that on the previous day, June 12, Hastings acquired 5,230 restricted stock units (RSUs). These units will vest on June 12, 2025, conditional upon Hastings' continued service with Pacira BioSciences through the vesting date. Each RSU represents the right to receive one share of common stock upon vesting.
In addition to the non-derivative securities transactions, the Form 4 filing revealed that Hastings was granted 12,179 stock options (rights to buy) on June 12. These options have a conversion or exercise price of $28.68 and are exercisable starting June 12, 2025, with an expiration date of June 12, 2034.
Following the reported transactions, Hastings' ownership in Pacira BioSciences stands at 12,724 shares of common stock directly held, plus the potential to acquire an additional 12,179 shares through the exercisable stock options.
Investors often monitor insider buying and selling as it can provide insights into a company's internal perspective and future prospects. The transactions by Hastings are part of the regular disclosure required by company insiders, providing transparency into their trading activities and holdings in the company.
In other recent news, Pacira BioSciences has seen various significant developments. The company reported Q1 2024 revenue of $149 million, slightly below consensus estimates, with Exparel sales at $118 million. In addition, Pacira recently launched a private placement of $250 million in convertible senior notes due in 2029, with net proceeds of approximately $242 million expected.
On the corporate governance front, Dr. Gary Pace has decided to retire from the company's Board of Directors, effective June 30, 2024, and will enter into a consulting agreement with Pacira. In the company's Annual Meeting, shareholders elected four Class I directors and ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2024.
Analysts from firms including RBC Capital Markets, Barclays, and JMP Securities have given Pacira various ratings, with price targets ranging from $38.00 to $57.00. Piper Sandler reaffirmed an Overweight rating with a $42.00 price target, while Needham maintained a Buy rating but lowered the price target to $43 from $45. These recent developments reflect the evolving landscape of Pacira BioSciences.
InvestingPro Insights
Pacira BioSciences, Inc. (NASDAQ:PCRX) has recently seen significant insider transactions, which may draw investor attention to the company's performance metrics and future outlook. According to InvestingPro data, Pacira has a market capitalization of approximately $1.33 billion and a Price-to-Earnings (P/E) ratio of 18.64. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 20.97, reflecting the company's earnings relative to its share price.
An InvestingPro Tip suggests that net income for Pacira is expected to grow this year, which could be a positive sign for investors looking for growth potential in their investments. Additionally, the company's strong free cash flow yield, as indicated by another InvestingPro Tip, is an attractive metric for those interested in the company's ability to generate cash after capital expenditures.
Despite recent insider sales, these financial metrics, coupled with a valuation that implies robust free cash flow yield, might offer a compelling narrative for investors. Moreover, with analysts predicting profitability for the company this year and a note that liquid assets exceed short-term obligations, the financial health of Pacira appears stable.
For investors seeking further insights and detailed analysis, InvestingPro offers additional tips on Pacira BioSciences. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of investment tools and data. Currently, there are six more InvestingPro Tips available for Pacira, which can be found at https://www.investing.com/pro/PCRX. These tips could further inform investment decisions and provide a deeper understanding of the company's financial landscape.
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