Journey Medical Corp (NASDAQ:DERM) director Lindsay (NYSE:LNN) Rosenwald has made a significant investment in the company's stock, according to a recent SEC filing. On March 22, Rosenwald purchased 20,000 shares of Journey Medical Corp at a price of $3.40 per share, totaling an investment of $68,000.
This recent acquisition has increased Rosenwald's direct holdings in the company to 134,245 shares, as stated in the filing. The filing also noted that Rosenwald has indirect ownership of an additional 176,470 shares through a limited liability company, where Rosenwald, as the managing member, possesses voting and investment power. This indirect ownership includes restricted stock units which are set to vest over various periods.
Investors often monitor insider transactions as they can provide insights into how the company's executives and directors view the stock's value. In this case, Rosenwald's purchase could be seen as a sign of confidence in the future of Journey Medical Corp.
The company, which is based in Scottsdale, Arizona, specializes in pharmaceutical preparations and operates under the trading symbol DERM on the NASDAQ stock exchange. The SEC filing was signed on behalf of Rosenwald by attorney-in-fact Ramsey Alloush on March 25.
InvestingPro Insights
Following the recent insider transaction by director Lindsay Rosenwald, Journey Medical Corp (NASDAQ:DERM) presents a mixed financial landscape. The company holds a market capitalization of approximately $63.77 million, reflecting its current valuation in the market. Despite facing a challenging period with analysts anticipating a sales decline in the current year, Journey Medical Corp has managed to maintain a gross profit margin of 66.33% over the last twelve months as of Q4 2023, suggesting a strong ability to control costs relative to revenue.
An intriguing aspect for potential investors is the company's financial health, as indicated by one of the InvestingPro Tips, which notes that Journey Medical Corp holds more cash than debt on its balance sheet. This could provide a cushion against market volatility and financial stress. Moreover, the stock has experienced a high return over the last year, with a 148.12% price total return, signaling a potential rebound after a significant price drop of 58.54% over the last three months.
While the company does not pay dividends, which might deter income-focused investors, the high shareholder yield is another InvestingPro Tip that could attract those looking for capital gains. For investors seeking further insights, there are additional InvestingPro Tips available that provide a deeper analysis of Journey Medical Corp's financial health and market performance. Access these tips with an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DERM.
With the next earnings date approaching on May 7, 2024, investors will be closely watching to see if the company's strategic initiatives align with the optimistic actions taken by insiders like Rosenwald.
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