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In a recent transaction, Dr. Lindsay (NYSE:LNN) A. Rosenwald, President, CEO, and Chairman of Fortress Biotech, Inc. (NASDAQ:FBIO), has increased his stake in the company through the purchase of Series A Cumulative Perpetual Preferred Stock. On July 8, 2024, Dr. Rosenwald acquired an additional 5,000 shares at a weighted average price of $7.3529 per share, totaling approximately $36,764.
The transaction was conducted in the open market with prices ranging from $7.29 to $7.47 for the shares purchased. Following this acquisition, Dr. Rosenwald now directly owns a total of 117,500 shares in the company. This move by the CEO demonstrates a significant investment in the company's future and may be seen as a positive sign by investors.
Fortress Biotech, Inc., headquartered in Bay Harbor Islands, Florida, operates in the pharmaceutical preparations industry and is known for its focus on acquiring, developing, and commercializing high-potential marketed and development-stage drugs.
Investors tend to pay close attention to insider transactions like these, as they may provide insights into the executive's confidence in the company's prospects. The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission.
For those interested in the specifics of the transaction, further information is available upon request to the SEC, the issuer, or a shareholder of the issuer, as Dr. Rosenwald has undertaken to provide full details regarding the number of shares sold at each separate price within the range mentioned.
In other recent news, Fortress Biotech issued over 2 million shares of common stock to former holders of convertible preferred stock in a subsidiary, Urica Therapeutics, fulfilling obligations under a 2022 agreement. This issuance involved the distribution of shares and payment for fractional shares and accumulated unpaid dividends. The shares issued are exempt from registration under the Securities Act of 1933, but the resale of these shares by the former preferred stockholders was registered under the Securities Act.
Meanwhile, Mustang Bio (NASDAQ:MBIO), founded by Fortress Biotech, announced a registered direct offering and concurrent private placement of common stock and warrants projected to generate approximately $2.5 million. The company will issue over 6 million shares of common stock or equivalents at $0.41 per share.
In clinical developments, Mustang Bio reported a 90% response rate in its Phase 1/2 clinical trial of MB-106, a CAR T-cell therapy for Waldenstrom macroglobulinemia, a rare blood cancer. The trial data showed favorable safety outcomes, with the development of MB-106 depending on securing additional funding or establishing strategic partnerships.
In analyst notes, H.C. Wainwright significantly increased its stock target for Fortress Biotech, reflecting an optimistic outlook for the company. Roth/MKM maintained a Buy rating on Fortress Biotech, noting the company's 2023 revenue of $84.5 million, an increase from the $75.7 million reported in 2022. These are recent developments in the activities of both companies.
InvestingPro Insights
As Dr. Lindsay A. Rosenwald bolsters his stake in Fortress Biotech, Inc. (NASDAQ:FBIO), current and potential investors might be evaluating the company's financial health and market sentiment to understand the implications of this insider transaction. Here are some key insights from InvestingPro that could shed light on the company's situation:
Fortress Biotech's market capitalization stands at a modest $38.6 million, reflecting the scale of the company within the pharmaceutical preparations industry. Despite a challenging period, with the company's stock price having declined by over 80% in the past year, the CEO's recent purchase could be seen as a reaffirmation of his belief in the company's potential. This is further supported by an anticipated net income growth this year, as per one of the InvestingPro Tips. However, the same InvestingPro analysis also indicates that the company is quickly burning through cash, which might raise concerns about its financial sustainability.
From a valuation perspective, Fortress Biotech's stock is trading at a low revenue valuation multiple, which might appeal to value investors looking for underappreciated stocks. Additionally, the company's revenue growth has been positive over the last twelve months, with a notable increase of 32.48%. This could suggest that, despite the stock's price volatility and recent performance, there are areas of the business that are experiencing growth.
Investors considering Fortress Biotech as part of their portfolio might find these insights valuable, especially when combined with the confidence displayed by the CEO's investment. For those seeking more in-depth analysis, InvestingPro offers additional tips on the company's performance and outlook. In fact, there are 11 more InvestingPro Tips available for Fortress Biotech, which can be accessed along with comprehensive financial data at: https://www.investing.com/pro/FBIO. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, to gain further insights that could guide your investment decisions.
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