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Vericel corp executive sells $23,799 in stock, withholds shares for taxes

Published 10/02/2024, 04:08 PM
VCEL
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Vericel Corp (NASDAQ:VCEL) saw notable transactions from its Principal Accounting Officer, Jonathan Siegal, according to a recent SEC filing. Siegal sold shares of the company's common stock on October 1, 2024, for a total value of $23,799, with individual shares priced at $41.9. This sale was part of an automatic sale under a Rule 10b5-1 trading plan set up earlier in the year on March 13, 2024.

In addition to the sale, Siegal also engaged in transactions that withheld shares to meet tax obligations. Specifically, on September 30, 2024, 369 shares valued at $42.25 each, totaling $15,590, were withheld by the company for tax purposes as part of the vesting of Restricted Stock Units (RSUs). These RSUs had been granted to Siegal on September 30, 2021, with the next vesting date scheduled for September 30, 2025.

The filing also noted that Siegal acquired 937 shares of common stock due to the vesting of RSUs, at no cost, increasing his total direct ownership in the company. Following the transactions, Siegal's direct holdings in Vericel Corp were adjusted, reflecting the shares sold and withheld for taxes.

Investors and market watchers often scrutinize insider transactions for insights into a company's performance and management's confidence in the business. Vericel Corp, based in Cambridge, Massachusetts, specializes in biological products and operates within the Life Sciences sector. The company's stock is traded on the NASDAQ exchange under the ticker symbol VCEL.

In other recent news, Vericel Corporation has made significant strides with the FDA approval of MACI Arthro, a product designed for the arthroscopic treatment of knee cartilage defects and NexoBrid for pediatric use. The approval of MACI Arthro, the first biologic cartilage repair product authorized for arthroscopic use, is expected to increase the company's target market within the United States. Additionally, the FDA's nod for a less invasive version of Vericel's MACI therapy is anticipated to benefit around 20,000 patients annually.

Analysts from BTIG and TD Cowen have maintained a Buy rating on Vericel's stock, reflecting confidence in the company's direction. Canaccord Genuity has also initiated coverage on Vericel, assigning a Buy rating. These recent developments underline the ongoing momentum at Vericel Corporation.

For the second quarter of 2024, Vericel reported a record revenue of nearly $53 million, driven by growth in their MACI product and solid demand for NexoBrid. The company also raised its profitability outlook for the year. These are all recent developments that highlight the company's progress in the biopharmaceutical industry.

InvestingPro Insights

To provide additional context to Jonathan Siegal's recent transactions, it's worth examining some key financial metrics and insights from InvestingPro for Vericel Corp (NASDAQ:VCEL).

As of the latest data, Vericel Corp has a market capitalization of $1.99 billion, indicating its significant presence in the Life Sciences sector. The company's revenue for the last twelve months as of Q2 2024 stood at $214.52 million, with a notable revenue growth of 20.39% over the same period. This growth trend aligns with an InvestingPro Tip suggesting that net income is expected to grow this year, potentially supporting the company's valuation.

However, investors should note that VCEL is trading at a high earnings multiple, with a P/E ratio of 2,530. This elevated valuation metric is complemented by another InvestingPro Tip indicating that the stock is trading at a high Price / Book multiple of 8.16. These high multiples suggest that the market has priced in significant growth expectations for Vericel.

The recent insider transaction by Siegal occurred against a backdrop of stock price volatility. An InvestingPro Tip highlights that VCEL's stock has taken a big hit over the last week, with a 1-week price total return of -9.39%. Moreover, the stock has fared poorly over the last month, showing a -22.46% return. This recent performance may provide context for the timing of Siegal's automatic sale under the Rule 10b5-1 plan.

Despite the short-term price movements, Vericel Corp maintains a strong financial position. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations, as noted by InvestingPro Tips. This financial stability could be reassuring for long-term investors looking beyond the recent stock price fluctuations.

For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Vericel Corp, providing a deeper dive into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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