CAMBRIDGE, MA—Eric D. Shaff, the CEO and President of Seres Therapeutics, Inc. (NASDAQ:MCRB), recently executed a series of stock transactions as reported in a recent SEC filing. On November 15, 2024, Shaff acquired 7,812 shares of common stock through the vesting of restricted stock units, which were converted at no cost.
Subsequently, on November 18, 2024, Shaff sold 2,505 shares of Seres Therapeutics' common stock. The shares were sold at a weighted average price of $0.5409, with the total transaction valued at $1,354. This sale was conducted under a pre-arranged trading plan established on March 2, 2023, intended to cover tax obligations arising from the vesting of restricted stock units.
Following these transactions, Shaff now directly owns 170,389 shares of Seres Therapeutics. The company, based in Cambridge, Massachusetts, continues to focus on developing microbiome therapeutics.
In other recent news, Seres Therapeutics reported significant milestones in its Q3 2024 earnings call. The company announced promising results from its SER-155 Phase Ib clinical trial, which showed a 77% reduction in bacterial bloodstream infections among patients. Concurrently, the successful completion of the VOWST sale to Nestlé Health Science has provided Seres with significant upfront cash, enabling the company to retire debt and reduce its workforce by 100 employees. Despite these developments, Seres reported a net loss of $51 million for the quarter, primarily due to the extinguishment of Oaktree debt and decreased interest income. The firm is actively seeking partnerships to advance its research and development initiatives, with a focus on extending the application of SER-155 to various patient populations. These developments are part of Seres' recent efforts to streamline operations and focus on its live biotherapeutic programs, including SER-155 and SER-147. The company's financial position includes $66.8 million in cash, with expectations to fund operations into Q4 2025.
InvestingPro Insights
Recent data from InvestingPro sheds light on Seres Therapeutics' current financial position and market performance, providing context to CEO Eric D. Shaff's recent stock transactions.
As of the latest reporting period, Seres Therapeutics has a market capitalization of $117.42 million, reflecting its current valuation in the biotech sector. The company's revenue for the last twelve months stood at $126.33 million, but it's worth noting that Seres experienced a revenue decline of 0.72% during this period.
InvestingPro Tips highlight some challenges facing the company. One tip indicates that Seres is "quickly burning through cash," which could be a concern for investors considering the company's focus on developing microbiome therapeutics—a process that typically requires significant ongoing investment. Additionally, the stock has "taken a big hit over the last week," with a 1-week price total return of -12.8%, aligning with the timing of Shaff's stock sale.
The company's financial health appears strained, as evidenced by its negative operating income of -$42.39 million and an EBITDA of -$36.5 million for the last twelve months. These figures underscore the InvestingPro Tip that "analysts do not anticipate the company will be profitable this year."
Despite these challenges, it's interesting to note that the RSI (Relative Strength Index) suggests the stock is in oversold territory, which could indicate a potential buying opportunity for some investors. However, this should be weighed against the company's overall financial performance and market trends.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Seres Therapeutics, providing a deeper dive into the company's financial health and market position.
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