Shoshana Shendelman, the President and CEO of Applied Therapeutics, Inc. (NASDAQ:APLT), a biopharmaceutical company specializing in drug development, has recently sold a significant amount of company stock. The transaction, which took place on March 14, 2024, involved the sale of 318,573 shares at prices ranging from $5.37 to $5.795, with a weighted average price of $5.39 per share. The total value of the shares sold by Shendelman amounts to approximately $1,717,108.
The shares sold by Shendelman were to cover tax withholding obligations related to the vesting of compensatory Restricted Stock Units (RSUs). It is important to note that this sale was mandatory to satisfy tax requirements and was not a discretionary market transaction.
Following the transaction, Shendelman still holds a substantial number of shares in Applied Therapeutics. Directly, she owns 3,817,814 shares. Additionally, there are holdings through various indirect means such as a grantor retained annuity trust, a family trust controlled by Shendelman's spouse, her spouse's direct holdings, another family trust controlled by Shendelman, and Clearpoint Strategy Group LLC, where she is the sole owner.
Investors often monitor insider transactions for insights into how company executives view the stock's value and prospects. However, it's essential to distinguish between sales made to meet tax obligations and those that may reflect an executive's voluntary confidence in the company's future performance.
Applied Therapeutics is known for its work in addressing significant unmet medical needs, particularly in the area of rare diseases. The company's stock performance and insider transactions are closely watched by investors seeking to understand the potential growth and challenges faced by the company in the competitive pharmaceutical industry.
InvestingPro Insights
As investors digest the news of Shoshana Shendelman's stock sale at Applied Therapeutics, Inc. (NASDAQ:APLT), it's crucial to consider the company's current financial health and market performance. Applied Therapeutics, with a market capitalization of $631.09 million, has been experiencing significant price volatility, as indicated by an InvestingPro Tip that highlights the stock's tendency to trade with high price volatility. This is a critical factor for investors who are sensitive to market fluctuations and are considering the timing of their investment decisions.
Notably, the company's gross profit margins have been under pressure, with the last twelve months as of Q4 2023 showing a gross profit margin of -439.43%. This is consistent with another InvestingPro Tip that points out the company's weak gross profit margins. Additionally, the firm's operating income margin for the same period stands at -645.8%, underscoring the challenges it faces in achieving profitability.
Despite these financial metrics, Applied Therapeutics has seen a strong return over the last year, with a 1 Year Price Total Return of 532.22%. This suggests that while the company is currently unprofitable, as analysts do not anticipate it will be profitable this year, investors have been optimistic about its growth potential, possibly due to its focus on rare diseases and the promise of its drug development pipeline.
For those considering a deeper analysis of Applied Therapeutics, InvestingPro offers a comprehensive suite of additional tips and metrics. There are 11 more InvestingPro Tips available, which can provide a more nuanced understanding of the company's financial situation and market performance. To access these valuable insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/APLT.
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