CAMBRIDGE, MA—Thomas DesRosier, the Chief Legal Officer and Executive Vice President at Seres Therapeutics, Inc. (NASDAQ:MCRB), recently sold 4,259 shares of the company's common stock. The shares were sold at an average price of $0.6901, amounting to a total transaction value of approximately $2,939. This transaction was executed on October 28, 2024, under a prearranged trading plan designed to cover tax obligations related to the vesting of restricted stock units.
In an earlier transaction on October 27, 2024, DesRosier acquired 13,500 shares of common stock through the vesting of restricted stock units. These units were part of an award granted in 2023, which vested upon meeting specific performance criteria. Following these transactions, DesRosier now holds 133,414 shares directly.
In other recent news, Seres Therapeutics has been the subject of several significant developments. JPMorgan (NYSE:JPM) recently downgraded Seres Therapeutics' stock from Neutral to Underweight, citing unclear fundamental growth catalysts, despite the company's acquisition of Vowst by Nestlé Health Science. This move, however, has lifted some immediate financial pressure, allowing the company to retire its debt facility with Oaktree.
Seres Therapeutics' shareholders raised concerns regarding the company's decision to reject a takeover bid from Nestlé S.A. and proceed with the sale of its VOWST business. The sale, which includes the first FDA-approved orally administered microbiome therapeutic, is expected to strengthen the company's financial position, despite a reported net loss of $32.9 million.
TD (TSX:TD) Cowen maintained a Buy rating on Seres Therapeutics' shares, following positive data from its Phase 1b trial of SER-155. The treatment showed promise in reducing bloodstream infections in patients undergoing allogeneic Hematopoietic Stem Cell Transplantation.
These recent developments underscore Seres Therapeutics' commitment to advancing its pipeline of live biotherapeutics for medically vulnerable populations, despite financial difficulties and mixed outlooks from analysts.
InvestingPro Insights
Recent insider transactions at Seres Therapeutics (NASDAQ:MCRB) occur against a backdrop of challenging financial metrics for the company. According to InvestingPro data, Seres Therapeutics has a market capitalization of $131.51 million, reflecting its current position in the biotech sector.
Two key InvestingPro Tips are particularly relevant to the company's situation. First, Seres is "quickly burning through cash," which aligns with the insider's sale to cover tax obligations and suggests potential financial pressures. Second, the stock "has taken a big hit over the last week," with a 1-week price total return of -1.46% as of the most recent data.
The company's financial health appears precarious, with a negative gross profit of $94.3 million in the last twelve months as of Q2 2024. This is further emphasized by the staggering negative gross profit margin of -25,214.44%, indicating significant challenges in the company's core operations.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Seres Therapeutics, providing deeper insights into the company's financial situation and market performance.
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