Skye Bioscience director sells over $1.75 million in company stock

In a recent series of transactions, Andrew J. Schwab, a director and ten percent owner of Skye Bioscience, Inc. (OTCQB:SKYE), sold a significant amount of company stock, totaling over $1.75 million. The sales took place on September 11 and September 13, with prices ranging from $6.06 to $6.60 per share.

On September 11, Schwab sold 214,556 shares at $6.60 each, 36,504 shares at the same price, and 1,440 shares also at $6.60 per share. Following these transactions, Schwab's indirectly held ownership through 5AM Ventures VII, L.P., and 5AM Ventures II, L.P., was reported at 8,178,964 and 1,681,685 shares, respectively. Additionally, 5AM Co-Investors II, L.P., another entity with indirect ownership by Schwab, held 66,356 shares after selling 1,440 shares.

Two days later, on September 13, Schwab continued to sell shares at a slightly lower price point. The weighted average price for these sales was $6.06, with transactions ranging from $6.05 to $6.11 per share. On this date, 11,758 shares, 2,000 shares, and 79 shares were sold by entities indirectly associated with Schwab, namely 5AM Ventures VII, L.P., 5AM Ventures II, L.P., and 5AM Co-Investors II, L.P., respectively.

The footnotes in the SEC filing indicate that Schwab, through his managing member role in the various 5AM entities, may be deemed to have shared voting and investment power over the shares. However, he disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.

Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's prospects. The recent sales by a director of Skye Bioscience represent a notable change in the ownership structure and could be of interest to current and potential shareholders.

In other recent news, Skye Bioscience has been making significant strides in its ongoing clinical trials and research. The company's Phase II CBeyond study is currently evaluating the efficacy of its drug nimacimab in treating obesity. JMP Securities began coverage of the biotech company with a Market Outperform rating and a $15.00 price target, while Piper Sandler and Craig-Hallum have maintained their positive ratings, reflecting optimism about the trial's progress.

Oppenheimer also continues to hold an Outperform rating for Skye Bioscience, buoyed by the initiation of the Phase 2 CBeyond trial. The trial's design includes several highlights that strengthen the case for nimacimab as a leading treatment in the fight against obesity. The company has also expanded its board with the appointment of Karen Smith, MD, Ph.D., MBA, LLM, further bolstering its leadership team.

Skye Bioscience recently appointed Dr. Puneet S. Arora as its new Chief Medical Officer, bringing over 15 years of experience in clinical trials, regulatory submissions, and medical affairs. The company has partnered with Beacon Biosignals to incorporate sleep-related assessments into the CBeyond trial, given the link between obesity and sleep disorders. Interim data from the Phase 2 trial of nimacimab is expected in the second quarter of 2025. These are recent developments in Skye Bioscience's operations.

InvestingPro Insights

With Skye Bioscience, Inc. (OTCQB:SKYE) experiencing significant insider trading activity, investors are keen to understand the company's financial health and market performance. According to recent data from InvestingPro, Skye Bioscience has been grappling with financial challenges, as evidenced by an operating income and EBIT for the last twelve months as of Q2 2024, both standing at a negative $22.14 million USD. Furthermore, the company's EBITDA for the same period was nearly as low, at a negative $22.02 million USD, with EBITDA growth also down by 22.2%.

On the earnings front, Skye Bioscience has shown weak performance with a Basic and Diluted EPS (Continuing Operations) for the last twelve months as of Q2 2024 at -1.94 USD and -1.95 USD, respectively. This aligns with an InvestingPro Tip indicating that analysts do not expect the company to be profitable this year. Additionally, another InvestingPro Tip highlights that the company suffers from weak gross profit margins, which could be a contributing factor to the negative earnings figures.

Despite these challenges, Skye Bioscience has demonstrated a strong return over the last month, with a 1 Month Price Total Return as of a recent date in 2024 at an impressive 44.58%. This suggests a recent uptick in investor confidence or speculative interest, which could be worth noting for those looking at short-term investment opportunities.

For investors seeking a deeper dive into Skye Bioscience's performance and prospects, there are additional InvestingPro Tips available. In fact, there are 11 more tips listed on InvestingPro for Skye Bioscience, which can provide further insights into the company's financial stability, market performance, and potential investment risks or opportunities. These tips can be accessed through the dedicated InvestingPro page for Skye Bioscience at https://www.investing.com/pro/SKYE.

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