Allovir, Inc. (NASDAQ:ALVR) reported that Vikas Sinha, the company's President and Chief Financial Officer, has sold a total of 940 shares of common stock on October 3, 2024. This transaction was executed to cover tax withholding obligations related to the vesting of restricted stock units, as indicated in the latest SEC filing. The shares were sold at a price of $0.8148 per share, totaling approximately $765.
The sale was not at the discretion of Sinha but was required and automated to meet tax requirements upon the vesting of his restricted stock units. Following this transaction, Sinha still holds 1,152,644 shares of common stock directly. Additionally, the filing noted that Sinha may be deemed to have shared voting and investment power over 16,674,766 shares of common stock held by ElevateBio LLC, where he serves as a director and Chief Financial Officer. However, Sinha has disclaimed beneficial ownership of these shares, except to the extent of his pecuniary interest.
Investors often monitor the buying and selling activities of company executives as they can provide insights into the executive's view of the company's current valuation and future prospects. In this case, the transaction was related to tax obligations rather than a discretionary sale, which is an important distinction for investors to consider when interpreting the significance of the transaction.
The filing was made public on October 4, 2024, and serves as a standard update on the holdings and transactions of company insiders.
InvestingPro Insights
To provide additional context to Allovir's recent insider transaction, let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Allovir (NASDAQ:ALVR) has a market capitalization of $90.21 million. Despite the recent stock sale by the company's President and CFO, it's worth noting that Allovir holds more cash than debt on its balance sheet, according to an InvestingPro Tip. This financial position could provide the company with flexibility for future operations and research.
Another InvestingPro Tip indicates that Allovir is not profitable over the last twelve months, which aligns with the company's current stage as a biopharmaceutical firm focused on developing therapies. This is further supported by the negative EBITDA of -$120.47 million for the last twelve months as of Q2 2024.
Despite these challenges, Allovir's stock has shown some positive momentum, with a year-to-date price total return of 20.37% as of the latest data. However, investors should be aware that the company's one-year price total return stands at -60.08%, reflecting the volatility often associated with early-stage biotech companies.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Allovir's financial health and prospects. There are 7 more InvestingPro Tips available for ALVR, which could be valuable for investors conducting due diligence on the company.
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