Pliant Therapeutics, Inc. (NASDAQ:PLRX) reported a notable transaction by one of its top executives this week. Chief Business Officer Hans Hull sold 9,900 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on July 10, 2024, was valued at over $114,000, with the shares sold at an average price of $11.56 each.
The sale was part of a nondiscretionary plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. The shares were sold at varying prices ranging from $10.785 to $12.58 to satisfy withholding tax liabilities related to the vesting of performance-vested stock units. Hull has committed to provide detailed information regarding the number of shares sold at each price upon request.
Following the sale, Hull's direct holdings in Pliant Therapeutics stand at 227,494 shares of common stock. Additionally, the filing disclosed indirect holdings through trusts for which Hull and his spouse serve as trustees. Specifically, The Sloger Hull Family Trust holds 3,821 shares, while separate trusts for the reporting person's minor children, Child A Trust and Child B Trust, each hold 13,985 shares. Hull disclaims beneficial ownership of these shares except to the extent of his pecuniary interest.
Pliant Therapeutics, based in South San Francisco, California, is a biopharmaceutical company focused on the discovery and development of novel therapies for the treatment of fibrosis. The company's stock trades on the NASDAQ under the ticker symbol PLRX.
In other recent news, Pliant Therapeutics has been the focus of multiple analyst firms following promising trial results. Piper Sandler maintained an Overweight rating and a $40.00 price target, citing the company's significant activities and upcoming milestones, including the release of the 24-week Phase 2a INTEGRIS-PSC data expected in mid-2024. Similarly, Oppenheimer reiterated an Outperform rating and a price target of $48.00 after a study showed promising results of the company's drug bexotegrast on patients with Idiopathic Pulmonary Fibrosis (IPF).
RBC (TSX:RY) Capital also maintained an Outperform rating, with a steady price target of $45.00, bolstered by positive indicators from an independent study on Pliant's drug candidate, bexotegrast. Stifel reaffirmed its Buy rating on Pliant Therapeutics following the announcement of topline data from an exploratory study, which showed positive outcomes for the 160mg dose of Bexotegrast.
These recent developments underscore the potential of bexotegrast as a treatment for IPF, with several key catalysts anticipated in the coming years. The consistent results from these studies reinforce the potential of bexotegrast as a treatment for IPF, a chronic and often fatal lung disease characterized by a progressive decline in lung function. Pliant Therapeutics is advancing Bexotegrast into later-stage clinical trials, with Phase 2b/3 data now anticipated to be available around 2026.
InvestingPro Insights
As Pliant Therapeutics, Inc. (NASDAQ:PLRX) makes headlines with its recent executive stock transaction, investors may also be interested in the company's financial health and market performance. According to InvestingPro data, Pliant Therapeutics is currently navigating a challenging financial landscape. The company's market cap stands at $769.15 million, yet it exhibits a negative P/E ratio of -4.44, reflecting ongoing profitability concerns. The revenue for the last twelve months as of Q1 2024 is reported at $0.25 million, indicating a drastic decline of 97.46%.
Despite a significant return of 21.2% over the last week, Pliant Therapeutics has been facing headwinds in the market. The company has not been profitable over the last twelve months, and analysts do not expect it to be profitable this year, as per InvestingPro Tips. Moreover, the firm is trading at a high revenue valuation multiple, which may be a point of caution for value-focused investors. Additionally, while the company holds more cash than debt on its balance sheet, it is quickly burning through its cash reserves, which could be a concern for long-term sustainability.
For those looking to delve deeper into the financial intricacies of Pliant Therapeutics, there are 7 additional InvestingPro Tips available at https://www.investing.com/pro/PLRX. These tips could provide further context on the company's financial position and market outlook. Should you decide to access these insights, remember to use the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing more comprehensive analysis and data to inform your investment decisions.
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