Soleno Therapeutics Inc. (NASDAQ:SLNO) has reported that Patricia C. Hirano, the company's Senior Vice President of Regulatory Affairs, sold a significant amount of company stock. According to the latest filings, Hirano sold shares worth over $150,000.
The transactions, which occurred on October 1, 2024, involved the sale of 2,789 shares at a weighted average price of $49.3358 and 319 shares at a weighted average price of $50.2479. These sales were executed in multiple trades with prices ranging between $48.95 to $49.94 for the former and $49.95 to $50.49 for the latter, as disclosed in the filing footnotes. The total value of the shares sold by Hirano amounted to approximately $153,626.
The filings indicated that these shares were disposed of to cover tax withholding obligations connected with the vesting of restricted stock units (RSUs). After the transactions, Hirano's remaining direct ownership in the company includes 108,932 shares, which may include certain RSUs representing a contingent right to receive shares of common stock upon vesting.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's current valuation and future prospects. Soleno Therapeutics specializes in electromedical and electrotherapeutic apparatus, with its corporate headquarters located in Redwood (NYSE:RWT) City, California.
In other recent news, Soleno Therapeutics has experienced several significant developments. Stifel has raised its price target for the company to $74, maintaining a Buy rating, and expressing optimism about the potential approval of Soleno's diazoxide choline controlled-release (DCCR) treatment. The firm is confident about the drug's market exclusivity until mid-2030s, based on the likelihood of DCCR-related patents being listed in the FDA's Orange Book.
On the other hand, Piper Sandler reiterated its Overweight rating with a price target of $93.00, while H.C. Wainwright initiated coverage with a Buy rating and a price target of $70. Both firms anticipate a favorable outcome for DCCR, a potential treatment for Prader-Willi Syndrome. Moreover, Oppenheimer maintained an Outperform rating and a $65.00 price target, citing DCCR's market potential.
The FDA has accepted Soleno's New Drug Application (NDA) for DCCR, granting it Priority Review status with a target action date set for December 27, 2024. In addition, the company has seen changes in its Board of Directors, and has entered an agreement with Jefferies LLC to potentially sell up to $150 million of its common stock. Lastly, the company has awarded performance-based restricted stock units to its employees.
InvestingPro Insights
Soleno Therapeutics Inc. (NASDAQ:SLNO) has been experiencing significant market momentum, as evidenced by its impressive stock performance. According to InvestingPro data, SLNO has delivered a robust 94.37% total return over the past year, with a 23.43% year-to-date return. This strong performance aligns with one of the InvestingPro Tips, which highlights the company's "High return over the last year."
Despite the recent insider sale by Patricia C. Hirano, which was primarily to cover tax obligations, there are positive indicators for the company's financial health. An InvestingPro Tip notes that Soleno "Holds more cash than debt on its balance sheet," suggesting a solid financial position. This is particularly important for a company in the electromedical and electrotherapeutic apparatus sector, where research and development costs can be substantial.
Furthermore, analysts are optimistic about Soleno's future profitability. Another InvestingPro Tip indicates that "Net income is expected to grow this year," and analysts predict the company will be profitable this year. This positive outlook could explain why the stock is trading at a high Price / Book multiple of 6.78, as investors may be pricing in future growth potential.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 11 more InvestingPro Tips available for Soleno Therapeutics, providing a deeper understanding of the company's financial health and market position.
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