Reshape Lifesciences CFO sells shares worth $38

ReShape Lifesciences Inc.'s (NASDAQ:RSLS) Chief Financial Officer, Thomas Stankovich, has recently sold a portion of his holdings in the company. The transactions, which took place over several dates, resulted in a total sale of $38, with share prices ranging from $0.17 to $0.25.

The sales by the CFO were executed on four separate occasions, with the first disposal of 39 shares on November 30, 2023, at $0.23 per share. This was followed by the sale of 42 shares on December 31, 2023, at $0.25 per share. On February 29, 2024, Stankovich sold another 43 shares, this time at a lower price of $0.17 per share. The most recent sale occurred on May 31, 2024, where 48 shares were sold at $0.25 per share.

These sales are part of a plan where shares were sold to cover taxes associated with the vesting of a portion of restricted stock units that were awarded to Stankovich back on July 22, 2021. The restricted stock units, totaling 7,455, had been reported previously on a Form 4 filed on September 17, 2021. The recent sales were specifically for the purpose of covering tax obligations related to these units.

Following these transactions, the CFO's ownership in ReShape Lifesciences has adjusted, but he still retains a significant number of shares in the company. Investors often watch the buying and selling activity of company insiders as an indicator of confidence in the firm's prospects, making such disclosures important for market participants.

ReShape Lifesciences Inc. is known for its work in the surgical and medical instruments and apparatus industry, with a focus on developing advanced medical devices. The company's business address and principal executive offices are located at 1001 Calle Amanecer, San Clemente, CA.

"In other recent news, ReShape Lifesciences reported significant cost reductions and a strategic focus on profitability in its Q1 2024 financial results. Despite a 15% contraction in revenue due to competition from GLP-1 drugs, the company increased its gross profit margin to 60% and cut operating expenses by over half. ReShape Lifesciences and Vyome Therapeutics have announced an all-stock merger agreement, with the combined entity to be named Vyome Holdings, Inc. Concurrently, ReShape agreed to sell substantially all of its assets to Biorad Medisys for $5.16 million. These are recent developments that follow the company's limited launch of the Lap-Band 2.0 FLEX, with a full U.S. launch expected to drive sales in 2024. The company is also expanding its market into Canada and the EU, while exploring strategic mergers and acquisitions with the help of Maxim Group. ReShape Lifesciences, which remains debt-free with a net working capital of $4.4 million, is confident in the market potential of their Lap-Band products."

InvestingPro Insights

Amidst the recent insider trading activity, ReShape Lifesciences Inc. (NASDAQ:RSLS) presents a mixed financial landscape according to InvestingPro data. With a market capitalization of a modest $5.05 million, the company's financial health and stock performance offer several points of interest for investors. Notably, the company holds a Price/Book ratio of 1.11 as of Q1 2024, suggesting that the market values the company near its book value. Despite this, ReShape Lifesciences has experienced a significant revenue decline of 24.82% over the last twelve months leading up to Q1 2024, indicating potential challenges in its operational growth.

One of the key InvestingPro Tips highlights that ReShape Lifesciences is trading at a low revenue valuation multiple, which could be an indicator of undervaluation relative to its revenues. However, the company's gross profit margin stands strong at 65.85%, reflecting a solid capability to control costs relative to its revenues. This metric could be particularly relevant for investors evaluating the company's efficiency and profitability potential.

From a stock performance perspective, ReShape Lifesciences has seen its price fall by 84.27% over the past year, which aligns with another InvestingPro Tip pointing out that the stock has fared poorly over the last month. Such trends are essential for investors to consider when assessing the stock's historical performance and future outlook.

For those interested in exploring further, InvestingPro offers additional tips on ReShape Lifesciences, providing deeper insights into the company's financial health and stock performance. As of now, there are 11 more InvestingPro Tips available for RSLS at https://www.investing.com/pro/RSLS, which could provide investors with a more comprehensive understanding of the company's position in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.