SAN DIEGO, CA – Travere Therapeutics, Inc. (NASDAQ:TVTX) Director Gary A. Lyons has recently sold a significant portion of his holdings in the company, according to the latest SEC filings. On October 4, Lyons sold a total of 40,000 shares of common stock at weighted average prices ranging from $14.3479 to $15.1547, amounting to over $589,000.
The transactions were executed under a pre-arranged 10b5-1 trading plan, which allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. This plan was adopted on March 16, 2023, and the shares sold were part of a stock option granted on October 8, 2014, which was set to expire on October 8, 2024.
On the same day, Lyons also acquired 40,000 shares through the exercise of stock options at a price of $10.48 per share, totaling $419,200. This transaction increased his direct ownership in the company to 91,000 shares before the subsequent sale.
Investors often monitor insider transactions as they may provide insights into the executives' perspective on the company's current valuation and future prospects. The sale of shares by a director might raise questions among shareholders, but the use of a 10b5-1 trading plan can offer some reassurance that the sales were planned in advance and not based on any recent material insider information.
Travere Therapeutics, formerly known as Retrophin (NASDAQ:TVTX), Inc., is a biopharmaceutical company based in San Diego, California, focusing on therapies for rare and severe diseases. The company's stock is publicly traded, and these transactions are part of the regular disclosure of trading activities by company insiders.
For further details on the specific prices at which shares were sold, the company has offered to provide full information upon request by the SEC staff, the issuer, or any security holder of the issuer.
In other recent news, Travere Therapeutics has experienced significant developments. The company announced a temporary pause in patient enrollment for the Phase III HARMONY study for pegtibatinase, a treatment for Homocystinuria (HCU). This pause is due to a technical issue identified during the scale-up process in manufacturing, with enrollment anticipated to recommence in 2026. The delay has prompted Canaccord Genuity to revise its financial model and reduce its price target for Travere Therapeutics to $22. Similarly, Citi, H.C. Wainwright, and BofA Securities have adjusted their price targets while maintaining Buy ratings.
On a positive note, Travere's drug Filspari has received full FDA approval for the treatment of adult patients with primary Immunoglobulin A nephropathy, leading to a 37% increase in sales to $27.1 million in the second quarter of 2024. Furthermore, the company reported a robust financial position, with $325.4 million in cash and securities. Barclays (LON:BARC) also increased Travere's stock price target from $14.00 to $18.00, reflecting anticipation of positive regulatory developments for the company. These are the recent developments in Travere Therapeutics.
InvestingPro Insights
To provide additional context to Director Gary A. Lyons' recent stock transactions, it's worth examining some key financial metrics and insights from InvestingPro.
Travere Therapeutics (NASDAQ:TVTX) has shown impressive growth, with revenue increasing by 47.42% over the last twelve months as of Q2 2023. This strong performance is reflected in the stock's recent momentum, with InvestingPro data showing a significant 91.81% price return over the past three months and a 93.77% return over the last year.
Despite this positive trajectory, InvestingPro Tips highlight some potential concerns. The company is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may have influenced Director Lyons' decision to sell a portion of his holdings, although it's important to note that the sale was part of a pre-arranged trading plan.
Interestingly, InvestingPro Tips also indicate that the stock is "trading near its 52-week high" and has a "strong return over the last month." This aligns with the timing of Lyons' stock option exercise and subsequent sale, potentially allowing him to capitalize on the stock's recent performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Travere Therapeutics, providing a deeper understanding of the company's financial health and market position.
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