In a recent transaction, Robert Dee Etherington, the Chief Executive Officer of Clene Inc. (NASDAQ:CLNN), a pharmaceutical preparations company, acquired additional shares of the company's common stock. On September 30, 2024, Etherington purchased 10,000 shares at a price of $4.75 per share, totaling an investment of $47,500.
This purchase has increased Etherington's direct holdings in Clene Inc. to 40,149 shares. Additionally, it's noted that Etherington has indirect ownership through RDE RX Ventures LLC and the Etherington Revocable Trust. Specifically, RDE RX Ventures LLC holds 636 shares, and the Etherington Revocable Trust owns 1,250 shares. As the manager of RDE RX Ventures LLC and co-trustee of the Etherington Revocable Trust, Etherington may also be deemed to beneficially own these indirectly held shares.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission. It's a demonstration of the CEO's confidence in the company, as buying stock in the open market is often seen as a bullish signal by investors.
Investors and stakeholders in Clene Inc. continue to monitor insider transactions, as they can provide insights into the company's financial health and future prospects. Etherington's recent acquisition serves as a point of interest in understanding the executive's perspective on the company's value.
In other recent news, Clene Inc. has made significant amendments to its loan agreement with Avenue Venture Opportunities Fund, L.P., reducing the principal payment due in 2024 from $3.33 million to $2 million. The company also adjusted the exercise price of a related warrant and secured around $7.3 million through stock and warrant sales. These funds are expected to support the development of CNM-Au8®, a potential treatment for neurological diseases.
Additionally, Clene Inc. has been rated as a Buy by both EF Hutton and H.C. Wainwright, with price targets set at $23.00 and $31.00 respectively. The company also implemented a 1-for-20 reverse stock split, reducing the common stock from about 128.7 million shares to roughly 6.4 million shares.
In recent developments, Clene Inc. has shown promising results from Phase 2 clinical trials of CNM-Au8 for treating ALS and Rett Syndrome. The company plans to meet with the FDA to discuss the development of this drug, following the compilation of over 700 patient-years of safety data. These are recent developments and represent Clene Inc.'s ongoing efforts in addressing unmet medical needs in neurodegenerative diseases.
InvestingPro Insights
The recent insider purchase by Clene Inc.'s CEO Robert Dee Etherington aligns with some intriguing data points from InvestingPro. Despite the company's current challenges, there are signs of potential upside that may have influenced the CEO's decision to increase his stake.
According to InvestingPro data, Clene Inc. has a market capitalization of $29.96 million, reflecting its small-cap status. The company's revenue for the last twelve months as of Q2 2023 stood at $0.44 million, with a significant revenue decline of 43.62% over the same period. This decline is consistent with one of the InvestingPro Tips, which notes that analysts anticipate a sales decline in the current year.
Interestingly, despite the revenue challenges, Clene maintains a high gross profit margin of 81% for the last twelve months as of Q2 2023. This strong margin could be a factor in the CEO's confidence, suggesting efficient core operations despite overall financial pressures.
An InvestingPro Tip highlights that two analysts have revised their earnings upwards for the upcoming period, potentially indicating some optimism about the company's near-term prospects. This positive sentiment might be another factor behind Etherington's stock purchase.
However, it's important to note that Clene is currently not profitable, with a negative P/E ratio and operating income. The company is also burning through cash quickly, as pointed out by another InvestingPro Tip. These factors contribute to the stock's significant decline, with a 45.34% drop in the past six months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for Clene Inc., which could provide valuable context for understanding the company's current position and future potential.
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