Andrew Obenshain, President and CEO of bluebird bio, Inc. (NASDAQ:BLUE), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Obenshain sold 140 shares of common stock at a price of $9.24 per share, totaling approximately $1,293. The transaction comes as the stock trades at $8.46, down nearly 70% over the past year and showing significant volatility according to InvestingPro data.
The transaction was carried out on January 6, 2025, and was intended to cover tax withholding obligations related to the vesting of Restricted Stock Units. Following this sale, Obenshain retains ownership of 18,571 shares in the company. InvestingPro analysis reveals the company faces challenges with rapid cash burn and significant debt burden, with 12 additional key insights available to subscribers.
This sale comes after a 1-for-20 reverse stock split executed by bluebird bio in December 2024, which adjusted the number of shares reported. The transaction was conducted under a pre-established trading plan, indicating a planned approach to managing his stock holdings. The company's current market capitalization stands at $83.22 million, with analysts expecting sales growth in the current year.
In other recent news, Bluebird Bio (NASDAQ:BLUE) has been the subject of several significant analyst adjustments. RBC Capital Markets has notably reduced its price target for the biotech company from $80 to $8, maintaining a Sector Perform rating. This move follows the reporting of three severe adverse events related to Bluebird Bio's treatments, casting uncertainty over the company's future prospects.
Baird also lowered its price target for Bluebird Bio to $54 due to anticipated near-term dilution, but maintained a positive long-term outlook for the company. BofA Securities, on the other hand, downgraded Bluebird Bio's stock from Buy to Neutral and reduced the price target to $0.50, following a reassessment of the company's financial outlook and its key product, Lyfgenia for Sickle Cell Disease.
JPMorgan also downgraded Bluebird Bio's stock to Underweight, following the company's third-quarter financial results which revealed a loss per share of $0.31 and revenue of $10.6 million, falling short of the $18.3 million consensus estimate. Bluebird Bio also announced a reduced cash runway, expected to last into the first quarter of 2025.
Despite these challenges, Bluebird Bio's CEO Andrew Obenshain announced during their Third Quarter 2024 Earnings Call a rise in patient starts and a projected path to cash flow breakeven by the second half of 2025, contingent on securing additional cash resources. The company also plans a 20% reduction in cash operating expenses by Q3 2025 and a reverse stock split proposal to regain NASDAQ compliance. These recent developments highlight Bluebird Bio's strategic efforts to overcome its financial and operational challenges.
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