In a recent move, Longboard Pharmaceuticals, Inc. (NASDAQ:LBPH) saw its Chief Medical Officer, Kaye Randall, engage in significant stock transactions. Randall sold a total of $527,318 worth of common stock on September 16, at prices ranging from $30.886 to $34.0359 per share.
The sales were conducted in multiple transactions, with 9,366 shares sold at an average price of $30.886, 4,200 shares at $31.8148, 1,200 shares at $33.1246, and 1,900 shares at $34.0359. These transactions were reported through a Form 4 filing with the Securities and Exchange Commission (SEC), which noted that the sales occurred under a pre-established Rule 10b5-1 trading plan.
On the same day, Randall also acquired 16,666 shares of Longboard Pharmaceuticals’ common stock at a price of $4.35 per share, totaling $72,497. This acquisition was part of an option exercise, which is a routine transaction for executives and is often planned in advance.
Following these transactions, Randall’s direct ownership in the company has been adjusted to 17,920 shares, which includes restricted stock units (RSUs) granted earlier in the year. These RSUs are set to vest in four equal annual installments starting from February 2025.
Longboard Pharmaceuticals, based in La Jolla, California, is known for its focus on developing pharmaceutical preparations. The company’s stock activity, as reflected by the transactions of its executives, is closely watched by investors for insights into insider confidence and company performance.
Investors and stakeholders can request detailed information about the exact number of shares sold at each price point within the reported ranges by contacting Longboard Pharmaceuticals directly or referring to the SEC filings.
It’s worth noting that the transactions reported in this Form 4 were executed in accordance with the SEC’s rules and regulations, ensuring transparency and compliance with insider trading laws.
In other recent news, Longboard Pharmaceuticals has been the subject of several analyst reports. Truist Securities initiated coverage on Longboard Pharmaceuticals with a Buy rating and set a price target of $60. The firm’s analysis suggests that Longboard’s lead drug, bexicaserin, could outperform the current epilepsy treatment market leader, Fintepla. Longboard Pharmaceuticals is also developing a second asset, LP659, which has shown promising Phase 1 data.
Additionally, Baird reaffirmed its Outperform rating on Longboard Pharmaceuticals, maintaining a steady price target of $60.00. This followed the release of updated nine-month open-label extension (OLE) data on bexicaserin, which Longboard Pharmaceuticals presented at the ongoing European Epilepsy Congress.
Citi increased its price target for Longboard Pharmaceuticals from $40.00 to $45.00, following the FDA’s approval of a Phase 3 study for bexicaserin. Furthermore, Longboard plans to initiate a Phase 3 program by the end of 2024 and expects Phase 1 data for LP659 in the second quarter of 2024.
These are among the recent developments that highlight Longboard’s potential to address significant unmet needs in epilepsy treatment. Analysts, including those from H.C. Wainwright & Co and Cantor Fitzgerald, also hold a bullish stance, setting a price target of $60.
InvestingPro Insights
Longboard Pharmaceuticals, Inc. (NASDAQ:LBPH) has been a subject of investor attention following significant stock transactions by its Chief Medical Officer. As investors assess the implications of insider trading activity, a deeper look into the company’s financial health and market performance can provide valuable context.
One of the key InvestingPro Tips for Longboard Pharmaceuticals is the company’s ability to hold more cash than debt on its balance sheet, which can be a sign of financial stability. However, it is also noted that analysts have revised their earnings downwards for the upcoming period, reflecting potential concerns about the company’s future profitability.
InvestingPro Data reveals that Longboard Pharmaceuticals has an adjusted market capitalization of $1.19 billion. The company’s Price to Earnings (P/E) Ratio stands at -14.62, indicating that the company is not currently profitable. This is further emphasized by an adjusted P/E Ratio for the last twelve months as of Q2 2024 at -20.62. Additionally, the company has experienced significant EBITDA growth, with an EBITDA growth rate of -42.36% in the same period, which may raise questions about the company’s operational efficiency.
Despite these challenges, the company has seen a strong return over the last three months, with a price total return of 85.31%. This robust short-term performance is complemented by a substantial year-to-date price total return of 469.15%, showcasing a remarkable surge in investor confidence and market valuation.
For those seeking a more in-depth analysis, InvestingPro offers additional tips on Longboard Pharmaceuticals, providing investors with a comprehensive understanding of the company’s financial position and market dynamics. There are currently 11 more InvestingPro Tips available, which can be accessed for further guidance.
Investors interested in Longboard Pharmaceuticals’ future performance and insider trading implications can consider these insights as part of their evaluation. For more detailed analysis and tips, visit https://www.investing.com/pro/LBPH.
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