Desai Antal Rohit, a director at PROCEPT BioRobotics Corp (NASDAQ:PRCT), has recently sold a significant portion of the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Mr. Desai executed a series of transactions from November 5 to November 7, resulting in the sale of shares valued at approximately $9.63 million.
The sales were conducted under a pre-established Rule 10b5-1 trading plan, adopted on May 30, 2024. The shares were sold at prices ranging from $94.42 to $98.43 per share. Following these transactions, Mr. Desai, through The 2:22 DNA Trust, retains ownership of 164,363 shares of PROCEPT BioRobotics.
Earlier in the month, Mr. Desai also reported the distribution of shares from investment funds he is associated with, including White Tailed Ptarmigan, LP, Mallard Fund, L.P., and Kestrel Fund, L.P. These distributions were executed on a pro rata basis for no consideration, as noted in the filing.
In other recent news, Procept BioRobotics has shown significant financial growth. The company reported a robust 66% year-over-year increase in revenues for the third quarter of 2024, totaling approximately $58.4 million. This success is largely attributed to the company's HYDROS units, which accounted for around 80% of system placements in the third quarter. In light of these positive results, Procept BioRobotics has revised its full-year 2024 guidance to a range of $222.5 million to $223.0 million, up from the previous forecast of $217.0 million.
Furthermore, Procept BioRobotics has initiated a public offering of common stock valued at $175 million, with BofA Securities, Piper Sandler, and Morgan Stanley (NYSE:MS) serving as the joint book-running managers. The company also announced a new clinical trial for Aquablation therapy, further expanding its product offerings. Despite maintaining a Neutral rating from BTIG, these recent developments suggest a robust outlook for the company.
In addition, Truist Securities maintained a Buy rating on Procept BioRobotics and increased the price target to $105 from the previous $95, following the company's strong performance in the third quarter. The analyst at Truist Securities highlighted the reasons for the optimistic outlook, noting a significant increase in the average selling price (ASP) of the company's systems. The company's third-quarter results showed a higher than anticipated system ASP and a gross margin improvement of 400 basis points, contributing to the analyst's confidence in Procept BioRobotics' ability to continue its trajectory of above-average revenue growth.
InvestingPro Insights
The recent stock sale by director Desai Antal Rohit comes at a time when PROCEPT BioRobotics Corp (NASDAQ:PRCT) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown remarkable performance, with a 192.85% price total return over the past year and a 129.61% return year-to-date. This strong performance aligns with an InvestingPro Tip indicating that PRCT has had a "high return over the last year."
Despite the impressive stock performance, it's worth noting that PROCEPT BioRobotics is currently trading at a high revenue valuation multiple and a high Price / Book multiple of 21.58, as highlighted by InvestingPro Tips. This suggests that investors are pricing in substantial future growth expectations.
The company's financial health appears mixed. While an InvestingPro Tip points out that liquid assets exceed short-term obligations, indicating good short-term financial stability, another tip reveals that the company is not profitable over the last twelve months. This is reflected in the negative operating income of -$106.46 million for the last twelve months as of Q3 2024.
Investors considering PROCEPT BioRobotics should be aware that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip. However, the company's revenue growth remains strong, with a 71.71% increase in the last twelve months as of Q3 2024.
For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for PROCEPT BioRobotics, providing a deeper understanding of the company's financial position and market performance.
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