Establishment Labs CEO sells $164k in company shares

In a recent transaction, Juan Jose Chacon Quiros, the Chief Executive Officer of Establishment Labs Holdings Inc . (NASDAQ:ESTA), sold a total of 3,641 shares of the company's stock. The sale, executed on July 11, 2024, was conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks at a specified time.

The shares were sold at prices ranging from $45.00 to $45.17, with the weighted average sale price coming in at $45.0396 per share. The total value of the shares sold by CEO Chacon Quiros amounted to approximately $163,989.

Following the transaction, the CEO still holds a substantial number of shares in Establishment Labs directly and indirectly. Post-transaction, Chacon Quiros directly owns 210,735 shares. Additionally, an indirect holding through Sariel LLC accounts for 1,128,264 shares, over which Chacon Quiros has voting and dispositive power. However, he disclaims beneficial ownership of these indirect shares, except to the extent of his pecuniary interest.

The transaction was disclosed in compliance with SEC regulations, which mandate timely reporting of insider trading activities. The details of the sale, including the number of shares sold at each price point, are available upon request for interested parties, as indicated in the filing footnotes.

Establishment Labs Holdings Inc., known for its innovations in the medical device sector, particularly in the field of aesthetic products, continues to be a notable player in the orthopedic, prosthetic, and surgical appliances and supplies industry.

In other recent news, Establishment Labs Holdings Inc. has seen a significant increase in its Q1 2024 revenue, reaching $37.2 million, a notable improvement from past quarters. The company reported a decrease in its adjusted EBITDA loss to less than $4 million, down from $17 million. Mizuho Securities has raised its price target for Establishment Labs from $65 to $70, following the company's announcement that the FDA has completed its review of the pre-market approval application for its Motiva implants. The FDA's approval is dependent on a successful inspection of the company's manufacturing facilities, expected to be finalized within 30 days.

In addition to these developments, Establishment Labs has launched its Motiva implants in China and Flora tissue expanders in the U.S, expanding its market presence. Jeff Ehrhardt has been appointed to lead the North American business, and the company's cash position as of March 31 was reported to be $73 million, a significant rise from $40 million at the end of 2023. Despite reporting a net loss of $22.7 million for the first quarter, the company aims to achieve positive adjusted EBITDA by the end of 2024 and positive cash flow by the end of 2025, according to analyst projections.

InvestingPro Insights

The recent insider trading activity by Establishment Labs Holdings Inc.'s CEO has drawn attention to the company's financial health and market performance. According to InvestingPro Tips, analysts have revised their earnings projections downwards for the upcoming period, reflecting a cautious stance on the company's short-term profitability. Additionally, the company is not expected to be profitable this year, which aligns with the CEO's decision to sell a portion of his holdings.

Reviewing the InvestingPro Data, Establishment Labs exhibits a high Price / Book ratio of 22.06 as of Q1 2024, suggesting a premium market valuation relative to its book value. Furthermore, the company's revenue has experienced a decline of 8.23% over the last twelve months, and its operating income margin stands at -42.17%, indicating challenges in achieving profitability. Despite these hurdles, the company's liquid assets exceed its short-term obligations, providing some financial flexibility.

For readers interested in a deeper dive into Establishment Labs' financials and market predictions, InvestingPro offers additional insights. There are several more InvestingPro Tips available that can help investors make informed decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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