SAN DIEGO—Matthew Singleton, a director at Viking Therapeutics, Inc. (NASDAQ:VKTX), recently executed a significant stock sale, according to a filing with the Securities and Exchange Commission. On October 25, Singleton sold 16,000 shares of common stock at a price of $79.50 per share, amounting to a total transaction value of $1.27 million.
Prior to this sale, Singleton acquired 16,000 shares through the exercise of stock options at a price of $4.48 per share. These transactions were conducted under a Rule 10b5-1 trading plan, which Singleton adopted on May 16, 2024.
Following these transactions, Singleton's direct ownership of Viking Therapeutics shares stands at 9,500 shares. Viking Therapeutics, based in San Diego, specializes in the development of therapies for metabolic and endocrine disorders.
In other recent news, Viking Therapeutics reported its third-quarter financial results, revealing a net loss of $24.9 million. The company's research and development expenses increased to $22.8 million, while general and administrative expenses rose to $13.8 million. Despite the loss, Viking Therapeutics maintains a strong cash position, with $930 million in cash and equivalents, supporting its strategic plans for future clinical trials.
BTIG maintained a Buy rating on Viking Therapeutics, with a focus on the upcoming presentation of higher dose oral VK2735 data at Obesity Week. The firm predicts that the company's stock could see an increase of 15-20% in their base case scenario if the weight loss data exceeds expectations. In addition, BTIG is anticipating the commencement of Phase 2 studies for the oral VK2735 in the upcoming quarter.
Viking Therapeutics also reported positive trial data for VK2735 and VK2809. The company plans to advance VK2735 into Phase 3 and initiate a Phase 2 obesity study for the same. It is also preparing for an end of Phase 2 meeting with the FDA and is considering collaboration with larger pharmaceutical partners for the NASH program. These are recent developments that could be significant milestones for Viking Therapeutics in the near future.
InvestingPro Insights
Viking Therapeutics' recent stock performance aligns with the significant insider transaction reported. According to InvestingPro data, the company has seen a remarkable 631.3% price total return over the past year, with a 23.6% increase in the last month alone. This surge has pushed the stock to 78.49% of its 52-week high, reflecting strong market confidence.
Despite the impressive stock performance, InvestingPro Tips reveal that Viking Therapeutics is not currently profitable and analysts do not anticipate profitability this year. This context adds significance to Director Singleton's decision to sell shares, potentially capitalizing on the stock's recent gains.
The company's financial health presents a mixed picture. An InvestingPro Tip notes that Viking holds more cash than debt on its balance sheet, indicating financial stability. However, the company suffers from weak gross profit margins, which could be a concern for long-term investors.
For those seeking a deeper understanding of Viking Therapeutics' financial position, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's prospects and challenges. These insights could be particularly valuable given the stock's high Price / Book multiple of 8.95, suggesting the market may be pricing in significant future growth expectations.
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