Veru Inc. (NASDAQ:VERU) President and CEO Mitchell Steiner has sold a portion of his company shares, totaling over $87,000. The transactions took place over a span of three days, with varying prices per share.
On May 22, 2024, Steiner sold 6,504 shares of common stock at an average price of $1.3866, while on May 23, he sold an additional 300 shares at $1.35 each. The sales continued on May 24, with Steiner selling 63,379 shares at an average price of $1.2323. The price range for these sales varied between $1.2323 and $1.3866 per share.
The sales made by the CEO are reported to assist in addressing certain personal matters. According to a footnote in the SEC filing, these transactions represent a minor fraction, only 0.7%, of Steiner's total beneficial ownership in Veru Inc. Following these sales, Steiner still beneficially owns 9,615,996 shares, maintaining his position as the company's second-largest shareholder.
It's worth noting that Steiner's direct ownership, as opposed to indirect ownership through trusts or other vehicles, has been adjusted accordingly. He also maintains indirect ownership of 144,000 shares held in trusts for the benefit of his adult children, for which he serves as the trustee. However, he disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into an executive's perspective on the company's current valuation and future prospects. Steiner's recent sale, while significant in dollar value, still leaves him with a substantial stake in Veru Inc., indicating a continued vested interest in the company's success.
InvestingPro Insights
As Veru Inc. (NASDAQ:VERU) navigates through its financial landscape, recent data from InvestingPro provides a clearer picture of the company's current standing. With a market capitalization of approximately $180.05 million, Veru's size in the market is modest. The company's price-to-earnings (P/E) ratio stands at -3.31, reflecting investor sentiment about its earnings potential. Moreover, when looking at the last twelve months as of Q2 2024, the adjusted P/E ratio worsens to -4.21, suggesting that profitability remains a challenge for the company.
An InvestingPro Tip highlights that Veru is quickly burning through cash, which could be a point of concern for investors considering the CEO's recent share sales. Additionally, analysts do not anticipate the company will be profitable this year, which may be reflected in the negative P/E ratios. The company's stock has also been identified as trading with high price volatility, an important factor for potential investors to consider given the recent insider transactions.
Despite the challenges, Veru has a couple of positive aspects as indicated by InvestingPro Tips. The company holds more cash than debt on its balance sheet and liquid assets exceed short-term obligations, providing some financial stability. Moreover, Veru's stock has delivered a strong return over the last three months, with a 108.47% price total return, which could be appealing to traders looking for short-term gains.
For those interested in a deeper dive into Veru Inc.'s financial health and future outlook, InvestingPro offers additional tips and metrics. With the use of coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 11 additional InvestingPro Tips available for Veru Inc. that can provide valuable insights to investors and traders alike.
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