Jeffrey Hessekiel, Executive Vice President and General Counsel of Exelixis, Inc. (NASDAQ:EXEL), recently sold 25,000 shares of the company’s common stock. The transaction, which took place on October 28, 2024, was executed under a pre-established Rule 10b5-1 trading plan. The shares were sold at a weighted average price of $28.39, with the total sale amounting to $709,750. Following the sale, Hessekiel retains direct ownership of 580,325 shares, which includes 236,022 shares to be issued upon the vesting of restricted stock units. Additionally, he holds 999 shares indirectly through the Exelixis 401(k) Plan.
In other recent news, Exelixis reported a robust financial performance in its Third Quarter 2024 Earnings Call. The company saw a 9% increase in net product revenues, reaching $478 million, and a 12% increase year-over-year. Exelixis also raised its full-year revenue guidance, projecting U.S. sales to approach $3 billion by 2030.
The company highlighted its expanding oncology portfolio, including a collaboration with Merck for zanzalintinib (Zanza), and its focus on pivotal trials and product launches starting in 2026. Exelixis reported total revenues of approximately $539.5 million for Q3 2024, with the cabozantinib franchise contributing $478 million.
These are recent developments for Exelixis, which has also raised its total revenue guidance to $2.15 billion to $2.2 billion for 2024. The company remains optimistic about the market potential for CABOMETYX in the neuroendocrine tumor (NET) market. With a favorable ruling in the Cabo ANDA litigation and a partnership with Merck for Zanza, Exelixis is well-positioned for mid- to long-term revenue growth.
InvestingPro Insights
The recent stock sale by Exelixis' Executive Vice President and General Counsel comes at a time when the company's stock is showing strong performance. According to InvestingPro data, Exelixis has experienced significant returns, with a 60.28% price total return over the past year and a 39.41% return in the last three months. The stock is currently trading near its 52-week high, with the price at 97.36% of its peak.
These robust returns align with the company's solid financial performance. Exelixis reported a revenue of $2.08 billion in the last twelve months as of Q3 2024, with a notable revenue growth of 17.31%. The company's profitability is also impressive, boasting a gross profit margin of 96.25% and an operating income margin of 29.22%.
InvestingPro Tips highlight that Exelixis operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a strong financial position. This financial stability may provide context for the insider's decision to sell shares, possibly as part of a personal portfolio rebalancing rather than a reflection on the company's prospects.
It's worth noting that while the insider has sold shares, management has been aggressively buying back stock, indicating confidence in the company's value. This buyback activity contributes to a high shareholder yield, another positive signal for investors.
For readers interested in a deeper analysis, InvestingPro offers 16 additional tips for Exelixis, providing a comprehensive view of the company's financial health and market position.
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