Soleno Therapeutics Inc. (NASDAQ:SLNO) has reported that Kristen Yen, the company's Senior Vice President of Clinical Operations, sold a total of 3,108 shares of common stock on October 1, 2024. The transactions were executed in multiple trades at prices ranging between $49.3358 and $50.2479, with the total value of the shares sold amounting to approximately $153,626.
The sales were made to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as indicated in the footnotes of the filing. Following these transactions, Yen still owns 81,465 shares of Soleno Therapeutics, which includes certain securities in the form of RSUs. Each RSU represents a contingent right to receive one share of common stock upon meeting the applicable vesting schedule and conditions.
Investors and followers of Soleno Therapeutics will note that the sales have been carried out in compliance with the company's policies and have been fully disclosed as per regulatory requirements. The transactions were signed off by Anish Bhatnagar, Attorney-in-Fact, on October 3, 2024.
In other recent news, Soleno Therapeutics is in the limelight with significant developments. Stifel raised Soleno Therapeutics' share price target to $74, maintaining a Buy rating, with optimism centered on the potential approval of the company's diazoxide choline controlled-release (DCCR) treatment. The firm also anticipates market exclusivity for DCCR until the mid-2030s. Piper Sandler reiterated its Overweight rating on Soleno Therapeutics, maintaining a $93.00 price target, based on the anticipated favorable outcome for DCCR.
H.C. Wainwright initiated coverage with a Buy rating and a 12-month price target of $70 per share, expecting DCCR approval, which would allow Soleno to start generating revenue by the first half of 2025. Stifel reaffirmed its positive stance on Soleno Therapeutics, maintaining a Buy rating and a $59.00 price target, following the recent submission of a New Drug Application (NDA) for DCCR. The FDA has granted DCCR a priority review status, with a Prescription Drug User Fee Act (PDUFA) date set for December 27.
Oppenheimer maintained its Outperform rating and $65.00 price target on Soleno Therapeutics, citing the market potential of DCCR. The firm projects robust future sales for DCCR, potentially reaching approximately $1 billion in the U.S. by 2030. These recent developments highlight analysts' optimism regarding Soleno Therapeutics' prospects, particularly the potential approval and market performance of DCCR.
InvestingPro Insights
To provide additional context to Kristen Yen's stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Soleno Therapeutics (NASDAQ:SLNO).
As of the latest data, Soleno Therapeutics boasts a market capitalization of $1.9 billion, reflecting significant investor interest in the company. This valuation comes despite the fact that the company is not currently profitable, with a negative P/E ratio of -30.76 over the last twelve months as of Q2 2024.
One of the InvestingPro Tips highlights that Soleno "holds more cash than debt on its balance sheet," which is a positive sign for the company's financial health. This strong liquidity position is further supported by another tip indicating that "liquid assets exceed short term obligations." These factors may provide some reassurance to investors regarding the company's ability to fund its operations and research activities.
Interestingly, despite the lack of profitability, Soleno's stock has shown remarkable performance. The company has achieved a strong return over the last three months, with a price total return of 16.46% over that period. Even more impressive is the one-year price total return of 91.51%, underscoring the market's optimism about Soleno's prospects.
It's worth noting that analysts predict the company will be profitable this year, which could be a significant catalyst for the stock if realized. This expectation aligns with another InvestingPro Tip stating that "net income is expected to grow this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Soleno Therapeutics, providing a deeper understanding of the company's financial position and market performance.
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