In a recent transaction, Donald A. Bergstrom, the President of R&D at Relay Therapeutics, Inc. (NASDAQ:RLAY), a company specializing in biological products, sold shares of the company's common stock. The transaction occurred on September 27, 2024, and involved the sale of 648 shares at a price of $7.51 per share, amounting to a total value of $4,866.
The sale was conducted to cover Bergstrom's income tax withholding obligations related to the vesting of restricted stock units (RSUs). According to the footnotes in the filing, Bergstrom had no discretion over the sale, which was executed in line with the company's policies for RSU vesting. This transaction reduced Bergstrom's direct ownership in the company to 523,433 shares, which includes 459,049 shares underlying RSUs.
Investors tracking insider transactions of Relay Therapeutics may find this sale of interest as it reflects a transaction by a high-level executive within the company. Relay Therapeutics, headquartered in Cambridge, Massachusetts, continues to be a key player in the field of biological products, with its stock traded under the ticker RLAY on the NASDAQ exchange.
The details of this transaction were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated October 1, 2024.
In other recent news, Relay Therapeutics has released positive interim results for its drug candidate RLY-2608, which is undergoing trials for the treatment of PiK3CA-mutant, HR+/HER2- metastatic breast cancer. The therapy achieved a 33.3% objective response rate and a median progression-free survival of 9.2 months in a study group of 64 patients. This has led to firms such as H.C. Wainwright, Stifel, and Jefferies adjusting their stance on the company, with H.C. Wainwright raising its price target to $19.00 and maintaining a Buy rating, while Jefferies upgraded the stock from Hold to Buy. However, Oppenheimer downgraded their rating from Outperform to Perform due to concerns about the selectivity profile of RLY-2608. Relay Therapeutics also initiated a $200 million underwritten public offering of its common stock, and as of the second quarter of 2024, the company reported a cash position of approximately $688 million, expected to fund operations into 2026. These are the recent developments concerning Relay Therapeutics.
InvestingPro Insights
To provide additional context to the recent insider transaction at Relay Therapeutics, Inc. (NASDAQ:RLAY), let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Relay Therapeutics has a market capitalization of $1.07 billion. The company's financial position shows some strengths, with InvestingPro Tips indicating that RLAY holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This solid liquidity position could provide the company with financial flexibility as it continues its research and development efforts.
However, investors should note that Relay Therapeutics is currently not profitable, with a negative P/E ratio of -3.19 for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year. The company's revenue for the same period stood at $35.21 million, with a striking revenue growth of 3637.58%, albeit from a low base.
It's worth noting that 5 analysts have revised their earnings upwards for the upcoming period, which could signal some optimism about the company's near-term prospects. However, this should be balanced against the InvestingPro Tip indicating that the company is quickly burning through cash, a common characteristic of biotechnology companies in the research and development phase.
For investors considering RLAY stock, it's important to be aware that the stock price movements are quite volatile, as highlighted by another InvestingPro Tip. The stock is currently trading at 54.04% of its 52-week high, with a year-to-date price total return of -35.69% as of the latest data.
These insights from InvestingPro provide a more comprehensive view of Relay Therapeutics' financial health and market performance, complementing the insider transaction information. For those seeking a deeper analysis, InvestingPro offers 10 additional tips for RLAY, which could further inform investment decisions in this dynamic biotechnology company.
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