Fortress Biotech CEO acquires $36.97k in preferred stock

In a recent transaction on July 9th, Lindsay (NYSE:LNN) A. Rosenwald, President, CEO, and Chairman of Fortress Biotech, Inc. (NASDAQ:FBIO), made a notable purchase of the company's stock. Rosenwald acquired 5,000 shares of Series A Cumulative Perpetual Preferred Stock at an average price of $7.3942 per share, totaling approximately $36,971.

This transaction has increased Rosenwald's direct ownership in the company to 122,500 shares of the same stock category. The acquisition was executed through multiple open market transactions at varying prices, ranging from $7.25 to $7.48 per share. The reported figures reflect a weighted average sale price, consolidating all sales that occurred within a one-dollar price range on the same day.

Investors and the market often keep a close eye on insider transactions such as these, as they can be indicative of the company leadership's confidence in the firm's future prospects. With Rosenwald's role as both an executive and significant shareholder, his investment decisions are particularly noteworthy.

Fortress Biotech, a biopharmaceutical company, is known for its work in developing novel therapies and drug candidates across a range of diseases and conditions. The company's executive leadership, including Rosenwald, is integral to guiding its strategic direction and research initiatives.

The details of the transaction were filed with the Securities and Exchange Commission and are publicly accessible for those interested in the specifics of the stock acquisition. As per the requirements, full information regarding the number of shares sold at each separate price can be provided upon request by the SEC staff, the issuer, or a shareholder of the issuer.

In other recent news, Fortress Biotech has successfully completed an equity issuance to former Urica holders, involving the distribution of over 2 million shares of common stock. This action is in line with a 2022 agreement and emphasizes the company's strategy of managing its equity and fulfilling financial obligations to investors. Mustang Bio (NASDAQ:MBIO), a Fortress Biotech subsidiary, announced a projected gross proceeds of $2.5 million from a common stock and warrants offering, which is expected to bolster corporate purposes and working capital.

In clinical developments, Mustang Bio has reported a 90% response rate in its Phase 1/2 trial of MB-106, a CAR T-cell therapy for Waldenstrom macroglobulinemia, a rare blood cancer. This positive outcome is dependent on securing additional funding or establishing strategic partnerships for further development.

In terms of analyst notes, H.C. Wainwright has significantly increased its stock target for Fortress Biotech, reflecting a positive outlook for the company. Concurrently, Roth/MKM maintained a Buy rating on Fortress Biotech, highlighting the company's 2023 revenue of $84.5 million, an increase from the previous year. These recent developments underscore the ongoing activities of both Fortress Biotech and Mustang Bio.

InvestingPro Insights

Amidst the recent insider trading activity, Fortress Biotech, Inc. (NASDAQ:FBIO) presents a mixed bag of financial metrics and analyst expectations. According to InvestingPro data, the company's market capitalization stands at a modest $39.27 million, reflecting the scale of the business in the biopharmaceutical industry. Despite a notable revenue growth of 32.48% over the last twelve months as of Q1 2024, the company's gross profit margin is in negative territory at -39.14%, indicating challenges in maintaining profitability against its revenues.

InvestingPro Tips highlight several critical aspects for potential investors to consider. Analysts predict that Fortress Biotech will become profitable this year, which could signal a turnaround from the previous trend. However, the company is also flagged for quickly burning through cash, which may raise concerns about its financial sustainability. With the company trading at a low revenue valuation multiple and experiencing significant stock price volatility, investors are encouraged to weigh these factors carefully.

For those considering an investment in Fortress Biotech, additional insights are available. There are a total of 12 InvestingPro Tips listed on InvestingPro, which provide a deeper dive into the company's financial health and market position. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering access to comprehensive analysis tools and expert insights that can guide investment decisions.

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