Procept Biorobotics CEO Reza Zadno sells $26.2 million in stock

Published 2024-10-31, 05:10 p/m
PRCT
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San Jose, CA – Reza Zadno, President and CEO of PROCEPT BioRobotics Corp (NASDAQ:PRCT), recently executed significant stock transactions, as detailed in a recent SEC filing. On October 30, Zadno sold 288,461 shares of the company's common stock at a price of $91 per share, totaling approximately $26.2 million. This sale was conducted in connection with the underwriters' exercise of an option to purchase shares, as outlined in a prospectus supplement filed with the SEC.

In addition to the sale, Zadno also exercised stock options to acquire 288,461 shares at a price of $4.37 per share, with a total value of approximately $1.26 million. Following these transactions, Zadno's direct ownership stands at 258,445 shares.

These transactions reflect Zadno’s active engagement in managing his holdings in the company, which specializes in surgical and medical instruments. Investors will be watching closely to see how these moves impact the company’s stock performance in the coming days.

In other recent news, Procept BioRobotics has seen significant financial growth, with a robust 66% year-over-year increase in revenues for the third quarter of 2024, totaling approximately $58.4 million. This success is largely attributed to the company's HYDROS units, which accounted for around 80% of system placements in the third quarter. The company has revised its full-year 2024 guidance to a range of $222.5 million to $223.0 million, up from the previous forecast of $217.0 million.

Truist Securities maintained a Buy rating on Procept BioRobotics and increased the price target to $105 from the previous $95, following the company's strong performance. The firm highlighted significant increases in the average selling price of the company's systems as a key factor behind the raised revenue and profit forecasts.

Furthermore, Procept BioRobotics initiated a public offering of common stock valued at $175 million, with BofA Securities, Piper Sandler, and Morgan Stanley (NYSE:MS) serving as the joint book-running managers. The company also announced a new clinical trial for Aquablation therapy, expanding its product offerings. Despite these developments, BTIG maintained a Neutral rating on the company.

Lastly, Procept BioRobotics is projecting revenues of around $66.5 million for the fourth quarter of 2024. This projection is based on a variety of factors, including an expected decline in handpiece utilization, which is anticipated to be offset by higher system average selling prices.

InvestingPro Insights

The recent stock transactions by PROCEPT BioRobotics Corp's CEO Reza Zadno align with the company's strong market performance. According to InvestingPro data, PROCEPT has shown impressive growth, with a 247.26% price total return over the past year and a 121.98% return year-to-date. This robust performance is reflected in the company's current market capitalization of $5.03 billion.

InvestingPro Tips highlight that PROCEPT has seen significant returns over various time frames, including a notable 39.2% return in just the last week. This recent surge could be related to positive market sentiment following the CEO's transactions. Additionally, the company's revenue growth is substantial, with a 71.71% increase in the last twelve months as of Q3 2024, indicating strong business momentum.

However, investors should note that PROCEPT is currently trading at a high revenue valuation multiple and is not profitable over the last twelve months. An InvestingPro Tip suggests that analysts do not anticipate the company to be profitable this year, which may explain the CEO's decision to realize some gains through stock sales.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips for PROCEPT BioRobotics Corp, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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