In a recent transaction, Hisham Shiblaq, the EVP and Chief Commercial Officer of PROCEPT BioRobotics Corp (NASDAQ:PRCT), sold 26,046 shares of the company's common stock. The sale, which took place on June 10, 2024, was executed at an average price of $68.2446 per share, resulting in a total value of approximately $1.78 million.
The transaction was conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This ensures compliance with insider trading laws and regulations.
Prior to this sale, Shiblaq exercised options to acquire the same number of shares, 26,046, at a significantly lower price of $4.56 per share, totaling around $118,769. It's worth noting that these options were part of a grant dated April 5, 2019, which vested in stages beginning ten months after the vesting commencement date of March 25, 2019, and continued to vest monthly over a three-year period.
Following these transactions, Shiblaq's direct ownership in the company stands at 55,860 shares of common stock. Additionally, he holds 119,450 derivative securities, specifically stock options that are exercisable into common stock, which will expire on April 4, 2029.
PROCEPT BioRobotics Corp, based in San Jose, California, specializes in surgical and medical instruments and apparatus. These recent stock transactions by a high-level executive may be of interest to current and potential investors, as insider sales can provide insights into an executive’s view of the company’s value and prospects.
In other recent news, Procept BioRobotics has reported an 83% surge in revenue for Q1 2024, reaching $44.5 million, driven by robust sales of its Aquablation therapy and AQUABEAM Robotics Systems. The company's global presence in the urology sector is expanding, with a growing footprint in the UK and a planned launch in Japan. Despite a net loss of $26 million for the quarter, the firm achieved a record gross margin of 56.2% and expects this to rise between 58% and 59% by year-end.
TD Cowen and Piper Sandler have shown confidence in Procept BioRobotics' growth strategy, raising their price targets for the company's shares to $75. TD Cowen highlighted Procept BioRobotics' potential to become a dominant player in the global urology market, particularly with the application of its Aquablation therapy to prostate cancer treatment. Simultaneously, Piper Sandler noted the strong momentum of the company's Aquabeam system and the potential for significant revenue growth.
These developments indicate the company's ambition to address unmet medical needs in urology and its capacity to innovate within the specialized field. Procept BioRobotics' focus on expanding its technology application and market presence aligns with the analysts' positive outlook. The company's recent financial performance and strategic initiatives reflect its continued growth in the urology sector.
InvestingPro Insights
PROCEPT BioRobotics Corp's recent insider trading activity comes at a time when the company is demonstrating robust revenue growth but is also facing profitability challenges. InvestingPro data reveals that PROCEPT has seen an impressive revenue growth of 83.44% over the last twelve months as of Q1 2024. This is consistent with the company's quarterly revenue growth of 82.51% for Q1 2024, indicating a strong upward trend in sales. However, the company's Price/Earnings (P/E) Ratio stands at -30.32, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -33.36, signaling that investors are paying a premium for the company's earnings potential despite it currently not being profitable.
InvestingPro Tips suggest that analysts have recently revised their earnings upwards for the upcoming period, which may indicate optimism about the company's future performance. Additionally, despite analysts not expecting the company to be profitable this year, PROCEPT's liquid assets are reported to exceed its short-term obligations, providing some financial stability. This information could be particularly relevant for investors considering the insider sale and looking to assess the company's financial health and future prospects.
For those interested in a deeper dive into PROCEPT BioRobotics Corp's financial metrics and performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/PRCT. Investors can take advantage of these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. The current number of additional tips listed in InvestingPro for PROCEPT BioRobotics Corp is 11, offering a comprehensive view of the company's financial landscape.
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