In a recent transaction, Novo Holdings A/S, a significant shareholder in Spruce Biosciences, Inc. (NASDAQ:SPRB), has sold a portion of its holdings in the company. The sale, which took place on March 21, 2024, involved 465,021 shares of common stock at a weighted average price of $0.7547 per share, resulting in a total sale value of approximately $351,000.
Investors might note that the shares were sold in multiple transactions with prices ranging from $0.71 to $0.7785. Following this transaction, Novo Holdings A/S still retains a substantial stake in Spruce Biosciences, with 2,550,000 shares remaining in its possession.
Spruce Biosciences, a pharmaceutical company that specializes in developing treatments for rare endocrine disorders, has been part of Novo Holdings A/S's investment portfolio. Novo Holdings, based in Denmark, is known for its substantial investments in life sciences companies.
The transaction details, including the price range and the total number of shares sold, were made public as per the requirements for shareholders with significant stakes in public companies. The disclosure provides transparency for existing and potential investors who track insider transactions as part of their investment research.
Novo Holdings A/S has confirmed that it will provide additional information regarding the number of shares sold at each separate price within the reported range upon request by the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
InvestingPro Insights
As Spruce Biosciences, Inc. (NASDAQ:SPRB) experiences insider selling with Novo Holdings A/S reducing its stake, investors may find it valuable to consider the company's financial health and market performance. According to InvestingPro data, Spruce Biosciences currently holds a market capitalization of approximately $29.63 million. With a negative price-to-earnings (P/E) ratio for the last twelve months as of Q4 2023, sitting at -0.62, the company's financial performance indicates challenges in profitability. Additionally, the company's price to book ratio during the same period is notably low at 0.39, suggesting that the market values the company at less than its net asset value.
Among the InvestingPro Tips for Spruce Biosciences, two analysts have revised their earnings estimates upwards for the upcoming period—a potential signal of improved financial prospects. However, it is also noted that the company is rapidly depleting its cash reserves and analysts are anticipating a sales decline in the current year. This information could be particularly relevant for investors considering the recent insider selling activity.
For those interested in further analysis, InvestingPro offers additional insights, including the fact that Spruce Biosciences holds more cash than debt on its balance sheet, which could be a cushion against financial stress. On the flip side, the company is not expected to be profitable this year and is trading near its 52-week low, with high price volatility. With these mixed signals, investors might approach Spruce Biosciences with caution.
For a deeper dive into Spruce Biosciences' financials and to access more InvestingPro Tips, including the company's cash burn rate and gross profit margins, investors can explore the full suite of tools available at InvestingPro. There are 16 additional tips available for SPRB, which can be accessed with a yearly or biyearly Pro and Pro+ subscription. Use coupon code PRONEWS24 to get an additional 10% off.
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