CAMBRIDGE, MA—Matthew R. Henn, Chief Scientific Officer and EVP of Seres Therapeutics, Inc. (NASDAQ:MCRB), executed a stock transaction recently, selling 3,984 shares of common stock. The shares were sold at a weighted average price of approximately $0.6901 per share, totaling $2,749. This sale was conducted under a pre-arranged Rule 10b5-1 trading plan, primarily to cover taxes associated with the vesting of restricted stock units.
On October 27, 2024, Henn acquired 12,622 shares of common stock without any monetary exchange, as these were part of a vesting schedule for previously granted restricted stock units. Following these transactions, Henn now holds 75,885 shares of Seres Therapeutics common stock directly.
In other recent news, Seres Therapeutics has been the subject of multiple developments. The company's decision to sell its VOWST business to Nestlé Health Science has been approved by shareholders. This move, which includes the transfer of the first FDA-approved orally administered microbiome therapeutic, is expected to significantly strengthen Seres Therapeutics' financial position despite a reported net loss of $32.9 million.
JPMorgan (NYSE:JPM) has downgraded Seres Therapeutics from Neutral to Underweight, citing unclear growth potential and the absence of immediate, clear growth drivers. However, TD (TSX:TD) Cowen maintains a Buy rating on the company's shares, following positive data from the Phase 1b trial of SER-155 in patients undergoing allogeneic Hematopoietic Stem Cell Transplantation.
Seres Therapeutics' shareholders have also raised concerns over the company's rejection of a takeover bid from Nestlé S.A. and the subsequent sale of the VOWST business. The company is preparing SER-147 for IND readiness by the second half of 2025, targeting metabolic diseases. These are recent developments from Seres Therapeutics.
InvestingPro Insights
Recent transactions by Seres Therapeutics' Chief Scientific Officer Matthew R. Henn highlight the company's ongoing stock-based compensation practices. While these insider activities provide some insight into executive compensation, a broader look at Seres Therapeutics' financial health reveals more pressing concerns for investors.
According to InvestingPro data, Seres Therapeutics currently has a market capitalization of $131.51 million, reflecting its status as a small-cap biotech company. The firm's financial metrics paint a challenging picture, with revenue for the last twelve months as of Q2 2023 standing at just $0.37 million, coupled with a staggering revenue decline of 99.71% over the same period.
InvestingPro Tips indicate that Seres Therapeutics is "quickly burning through cash" and "operates with a significant debt burden." These factors are particularly concerning for a biotech company that relies heavily on research and development to bring products to market. The company's negative gross profit margin of -25,214.44% further underscores the financial strain it's under.
The stock's performance has been notably weak, with InvestingPro data showing a 46.08% price decline over the past three months. This aligns with another InvestingPro Tip stating that the "stock has taken a big hit over the last week" and has "fared poorly over the last month."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide valuable insights into Seres Therapeutics' investment potential. These tips, along with real-time metrics, can help in forming a more informed investment decision in the volatile biotech sector.
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