Retractable Technologies Inc (NYSEAMERICAN:RVP), a company specializing in the design, development, and manufacture of safety syringes and other medical devices, has reported insider transactions by its President and CEO, Thomas J. Shaw. According to the latest SEC filings, Shaw has increased his stake in the company through the purchase of additional shares.
On June 21, 2024, Shaw acquired 8,744 shares at $1.12 each, and on June 24, he purchased another 7,478 shares at $1.11 per share. The total investment for these transactions amounted to $18,093, reflecting a price range between $1.11 and $1.12 for the shares acquired. Following these purchases, Shaw's direct ownership in Retractable Technologies stands at 14,512,217 shares.
The transactions occurred under a pre-established trading plan, known as a Rule 10b5-1 plan, which was adopted on August 22, 2023. Such plans allow company insiders to set up a trading schedule in advance to buy or sell shares at predetermined times, providing a defense against potential claims of insider trading.
Additionally, the SEC filing disclosed that Shaw has indirect investment power over 500,000 shares as a trustee for the benefit of a family member and voting control over the remainder of the shares pursuant to a voting agreement.
Retractable Technologies has not commented on the transactions, and the purchases are part of normal insider activity as reported to the SEC. The company's stock is publicly traded, and these filings provide transparency into the actions of key executives and their confidence in the company's prospects.
InvestingPro Insights
Retractable Technologies Inc (NYSEAMERICAN:RVP) has been navigating a challenging financial landscape, as reflected in the latest data from InvestingPro. Over the last twelve months leading up to Q1 2024, the company has seen a notable revenue decline of 34.19%, with quarterly revenue also falling by 30.92%. Despite these setbacks, the company maintains a gross profit margin of 20.25%, albeit with a negative operating income margin of -29.19%. These figures underscore the company's current struggle to turn revenues into profits.
On the balance sheet, Retractable Technologies appears to be managing its liquidity effectively, with liquid assets surpassing short-term obligations. This is a positive sign for the company's short-term financial health, as highlighted in one of the InvestingPro Tips. However, the company's moderate level of debt and the fact that it has not been profitable over the last twelve months present ongoing challenges. In terms of share performance, the company has experienced a strong return over the last month with a 20.12% increase, although its one-year price total return stands at -3.42%.
For investors considering Retractable Technologies as a potential addition to their portfolio, it's worth noting that the company does not pay a dividend to shareholders, which may influence investment decisions depending on individual strategies and preferences for income-generating assets.
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