Jonathan Young, the Chief Operating Officer of Akero Therapeutics, Inc. (NASDAQ:AKRO), has recently sold a significant portion of his stock in the company. According to the latest filings, Young sold a total of 5,000 shares, bringing in over $121,000.
The transactions, which took place on April 1st, involved shares sold at a weighted-average price ranging from $23.99 to $25.07. Specifically, 4,600 shares were sold at prices fluctuating between $23.99 and $24.94, while the remaining 400 shares were sold at an average price of $25.025, with the price varying from $25.00 to $25.07.
Following these sales, the COO's direct ownership in the company stands at 263,306 shares. It's also noted that Young has indirect ownership through irrevocable trusts for his children, for which he disclaims beneficial ownership.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which was adopted on December 27, 2023. This plan allows company insiders to sell a predetermined number of shares at a predetermined time, providing an affirmative defense against accusations of trading on nonpublic information.
Investors often watch insider sales for signals about executives' confidence in their company's prospects. However, sales under 10b5-1 plans are typically planned in advance, which can offer a different context to the transactions.
Akero Therapeutics, based in South San Francisco, California, is a biotechnology company focused on developing treatments for serious metabolic diseases. Despite the recent insider sales, the company continues to progress in its various development programs.
InvestingPro Insights
Akero Therapeutics, Inc. (NASDAQ:AKRO) has been navigating a challenging market environment, reflected in its recent stock performance and financial metrics. According to InvestingPro data, Akero Therapeutics currently holds a market capitalization of $1.6 billion USD. This valuation comes in the context of a negative P/E ratio, which stands at -8.02, indicating that the company has been reporting losses. Adjusting for the last twelve months as of Q4 2023, the P/E ratio worsens to -10.62, underscoring the continued losses.
InvestingPro Tips reveal that analysts have revised their earnings expectations downwards for the upcoming period, which could be a point of concern for potential investors. Additionally, Akero Therapeutics is grappling with weak gross profit margins, an issue that can impact overall financial health. The company's stock price has also exhibited a tendency to move inversely to market trends, which could suggest a different risk profile compared to broader market movements. With net income expected to decline this year, and analysts not forecasting profitability within this timeframe, these factors could be crucial for investors considering the implications of the COO's recent stock sale.
On a more positive note, Akero Therapeutics holds more cash than debt, which could provide some financial flexibility. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a degree of near-term financial stability. However, it's important to note that the stock has experienced significant declines over the last six months, with a 51.16% drop in price total return, highlighting the volatility and potential risk for investors.
For those interested in a deeper analysis, there are over 10 additional InvestingPro Tips available which can provide further insights into Akero Therapeutics' financial health and stock performance. To explore these insights, visit https://www.investing.com/pro/AKRO. And remember, if you decide to upgrade to a yearly or biyearly Pro or Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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