PASADENA, Calif.—Bart Jan Cornelissen, the Senior Vice President and Chief Financial Officer of Xencor Inc . (NASDAQ:XNCR), recently sold 3,750 shares of the company’s common stock. The transaction, which took place on April 10, was executed at a price of $8.0621 per share, amounting to a total of $30,232. The sale comes as Xencor’s stock has declined nearly 63% year-to-date, though InvestingPro analysis suggests the stock is currently trading below its Fair Value.
The sale was made to cover withholding taxes upon the vesting of 14,088 restricted stock units, as noted in the filing. Following this transaction, Cornelissen holds 61,348 shares of Xencor. The company, with a market capitalization of $636 million, maintains strong liquidity with more cash than debt and current assets exceeding short-term obligations. For comprehensive insider trading analysis and additional insights, InvestingPro subscribers can access the detailed Pro Research Report, available for over 1,400 US stocks.
In other recent news, Xencor Inc has announced plans to restate its financial statements for the fiscal year ending December 31, 2023, and for subsequent quarters through September 30, 2024. This decision follows the identification of errors in accounting for a royalty transaction and tax misstatements. Specifically, Xencor acknowledged that a royalty transaction with OMERS Life Sciences should have been classified as debt, not deferred income, leading to significant misstatements in various financial accounts. The restatements will address an understatement of accounts receivable by $12.4 million and an overstatement of deferred income by $156.9 million. Additionally, debt was understated by $168.5 million, and shareholders’ equity was understated by $0.8 million. Revenue and interest expenses for the same period were also understated by $6.3 million and $5.5 million, respectively. Xencor discovered a material weakness in its internal control over financial reporting and a misstatement in research and development expenses, leading to an uncertain tax position estimated at $5.6 million. Despite these restatements, Xencor stated that its reported cash, cash equivalents, and marketable debt securities remain unaffected, and the company plans to file necessary amendments before its next Annual Report submission.
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