Cara Therapeutics, Inc. (NASDAQ:CARA) disclosed in a recent filing that Scott Terrillion, the company's Secretary and Chief Compliance & General Counsel, sold 2,753 shares of common stock. The transaction, which occurred on April 5, 2024, was executed at a price of $0.83 per share, resulting in a total sale value of approximately $2,284.
The sale was conducted under a prearranged "sell to cover" plan, which was adopted by Terrillion on September 7, 2018, to satisfy tax withholding obligations associated with the vesting of restricted stock units. This type of arrangement is common among corporate executives and is designed to automatically handle the sale of shares to cover tax liabilities triggered by the vesting of equity awards.
Following the sale, Terrillion's direct ownership in Cara Therapeutics stands at 88,247 shares. It is important to note that the transaction does not reflect a discretionary trade by Terrillion but rather a planned sale to meet tax obligations.
Cara Therapeutics, headquartered in Stamford, Connecticut, specializes in the field of pharmaceutical preparations. The company focuses on developing products that aim to alleviate pain and pruritus by targeting kappa opioid receptors.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it should be emphasized that such transactions may not always be indicative of broader trends or future performance.
The reported sale is a routine disclosure and provides transparency into the financial activities of Cara Therapeutics' executives. The company continues its operations and development activities as usual.
InvestingPro Insights
As Cara Therapeutics (NASDAQ:CARA) navigates the complexities of the pharmaceutical industry, recent financial metrics from InvestingPro shed light on the company's current standing. With a market cap of approximately $45.36 million and a notably low price-to-book ratio of 0.79 as of the last twelve months ending Q4 2023, the company's valuation reflects certain challenges. Notably, the revenue has seen a significant decline of nearly 49.92% over the same period, underscoring the difficulties faced in generating sales growth.
Despite a strong return over the last three months, with a 26.57% price total return, the overall picture for Cara Therapeutics has been less optimistic over the longer term. The price has fallen by 82.13% from the previous year, indicating a period of bearish sentiment among investors. This is further exemplified by the company's gross profit margin, which has been deeply negative at -441.53%, revealing substantial costs relative to revenues.
An InvestingPro Tip highlights that while Cara Therapeutics holds more cash than debt on its balance sheet, providing some financial flexibility, the company is quickly burning through cash, which could raise concerns about long-term sustainability. Additionally, analysts do not anticipate Cara Therapeutics to be profitable this year, which may influence investor confidence.
For those considering an in-depth analysis, there are additional InvestingPro Tips available on the Cara Therapeutics page at Investing.com. With these insights, investors can better gauge the potential risks and opportunities associated with the company. To access the full range of tips and benefit from a comprehensive investment tool, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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