SAN DIEGO, CA – Travere Therapeutics, Inc. (NASDAQ:TVTX) Director Jeffrey A. Meckler has sold shares of the company stock valued at approximately $562,324, according to a recent SEC filing. The transaction, which took place on September 30, 2024, involved the sale of 40,000 shares at a weighted average price of $14.0581, with individual sale prices ranging from $13.782 to $14.40.
The sale was executed under a prearranged 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information. This particular plan was adopted on March 15, 2024, and the shares sold were underlying a stock option granted to Meckler on October 8, 2014, which was set to expire on October 8, 2024.
Prior to this sale, Meckler also exercised options to acquire the same number of shares, 40,000, at a price of $10.48 per share, totaling $419,200. This transaction was in line with a fully vested and exercisable stock option as noted in the footnotes of the filing.
Following the sale, Meckler's ownership in Travere Therapeutics stands at 81,000 shares of common stock. The company, known for its focus on pharmaceutical preparations, has seen various insider transactions over time, which are often closely monitored by investors for insights into executive confidence in the company's prospects.
As with all insider transactions, the recent trades by Meckler provide a glimpse into the actions taken by those with intimate knowledge of the company, although they do not necessarily signal a specific financial trend or company outlook.
Investors and stakeholders in Travere Therapeutics continue to watch insider activity as one of many factors to consider in their understanding of the company's financial health and future potential.
In other recent news, Travere Therapeutics has experienced significant developments. The company's Phase III HARMONY study for pegtibatinase, a treatment for Homocystinuria (HCU), has temporarily halted patient enrollment due to a technical issue during the manufacturing process. The enrollment is expected to recommence in 2026, leading to a projected market entry delay of two years. As a result, Canaccord Genuity has reduced its price target for Travere Therapeutics to $22.
On a positive note, the company's drug Filspari has received full FDA approval for the treatment of adult patients with primary Immunoglobulin A nephropathy, which led to a 37% increase in sales to $27.1 million in the second quarter of 2024. Furthermore, Travere Therapeutics reported a robust financial position, with $325.4 million in cash and securities, which is expected to support its operations into 2028.
Several analyst firms, including TD Cowen, Citi, H.C. Wainwright, and BofA Securities, have maintained their Buy ratings on Travere Therapeutics, albeit with adjusted price targets. In addition, Barclays (LON:BARC) updated its outlook on the company, increasing the stock's price target from $14.00 to $18.00, reflecting the anticipation of positive regulatory developments for the company.
InvestingPro Insights
Travere Therapeutics' recent insider transaction occurs against a backdrop of mixed financial indicators. According to InvestingPro data, the company's market capitalization stands at $1.07 billion, reflecting its position in the pharmaceutical sector. Despite Director Meckler's sale, the stock has shown strong performance, with a 47.73% price return over the past month and an impressive 91.38% return over the last six months.
InvestingPro Tips highlight that Travere is experiencing rapid revenue growth, with a 68.08% increase in quarterly revenue as of Q2 2024. This growth trajectory aligns with the company's focus on pharmaceutical preparations and may explain the recent stock price appreciation that preceded the insider sale.
However, investors should note that Travere is currently unprofitable, with a negative gross profit margin of -31.44% in the last twelve months. An InvestingPro Tip indicates that the company is quickly burning through cash, which could be a concern for long-term sustainability.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Travere Therapeutics, providing a deeper understanding of the company's financial position and market performance.
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