Synlogic, Inc. (NASDAQ:SYBX) recently disclosed a transaction by its Chief Operating Officer, Antoine Awad, who sold shares to cover tax obligations. The transaction, which took place on April 2, 2024, involved the sale of 372 shares of common stock at a price of $1.73 per share, totaling approximately $643.
The sale was executed to cover the tax liability associated with the vesting of three restricted stock awards. These awards, which vested on April 1, 2024, were granted to Awad in the years 2020, 2021, and 2022. Following the transaction, Awad's ownership in Synlogic stands at 33,859 shares of common stock.
Restricted stock awards are part of compensation packages for executives and are typically subject to vesting schedules. As they vest, the recipient often incurs tax liabilities that are sometimes covered by selling a portion of the vested shares.
Investors and stakeholders in Synlogic, a pharmaceutical preparations company based in Cambridge, Massachusetts, may view this transaction as part of the normal course of business for corporate executives managing their equity-based compensation. The company, which has undergone a name change from Mirna Therapeutics, Inc. in the past, continues to communicate such transactions in compliance with SEC regulations.
The details of the transaction were officially filed with the SEC and are publicly available for review by investors and regulatory bodies. Synlogic's business address is located at 301 Binney Street, Suite 402, Cambridge, MA, 02142, and the company can be reached by phone at 617-401-9975.
InvestingPro Insights
While Synlogic, Inc. (NASDAQ:SYBX) navigates the complexities of executive compensation and tax liabilities, the company's financial health and market performance provide a broader context for investors. According to InvestingPro data, Synlogic holds a market capitalization of $20.73 million, reflecting its current valuation in the market. Despite a significant revenue growth of 185.68% in the last twelve months as of Q4 2023, the company's operating income margin shows a substantial deficit at -1636.34%, underscoring the challenges it faces in terms of profitability.
In terms of stock performance, Synlogic has seen a considerable decline, with a 1-year price total return of -77.72%, which might raise concerns among investors about the stock's volatility and future prospects. However, an InvestingPro Tip indicates that Synlogic holds more cash than debt on its balance sheet, which can be a sign of financial stability and may provide some comfort to investors considering the company's ability to manage its finances in the short term. Another relevant InvestingPro Tip is that the company's liquid assets exceed its short-term obligations, suggesting that Synlogic is in a position to cover its immediate financial needs.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which include insights such as the company's cash burn rate and profitability expectations. With a total of 10 InvestingPro Tips to explore, investors can gain a comprehensive understanding of Synlogic's financial position and future outlook. To access these insights, visit https://www.investing.com/pro/SYBX and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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