Jerome B. Zeldis, a director at NexGel, Inc. (NASDAQ:NXGL), recently acquired a significant amount of common stock in the company. According to a filing with the Securities and Exchange Commission, Zeldis purchased 3,636 shares of NexGel's common stock on November 20, 2024, at a price of $2.75 per share. This transaction amounted to a total value of approximately $9,999.
In addition to the stock purchase, Zeldis also acquired a warrant to purchase an additional 1,818 shares of common stock. The exercise price for these warrants is set at $4.25 per share, with an expiration date of November 20, 2029. These acquisitions were part of NexGel’s registered direct offering, with Zeldis agreeing not to sell or otherwise dispose of the shares or warrants for a period of 180 days following the transaction date.
Following these transactions, Zeldis holds a total of 106,664 shares of NexGel common stock directly. The company, based in Langhorne, Pennsylvania, specializes in the production of surgical and medical instruments and apparatus.
In other recent news, NEXGEL, a specialty hydrogel producer, has reported record revenue of $2.94 million in the third quarter of 2024, marking a 141% increase year-over-year. This significant surge in revenue has been attributed to the acquisition of the Silly George brand and robust performance in contract manufacturing. Despite this, the company reported a net loss of $754,000, which was higher than the $552,000 loss in the same quarter of the previous year.
NEXGEL anticipates exceeding $3 million in revenue in the fourth quarter of 2024, and has launched Histasolv in collaboration with STADA, along with entering a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. The company also expects potential revenue from a laser hair removal study in the first half of 2025.
However, the company's selling, general, and administrative expenses rose by approximately 118% to $2.07 million, largely due to increased advertising and marketing costs. Expansion of distribution in Europe and the U.S. is also underway, with products expected in stores by 2025. These are some of the recent developments in the company's operations.
InvestingPro Insights
Jerome B. Zeldis's recent purchase of NexGel (NASDAQ:NXGL) shares aligns with several positive trends highlighted by InvestingPro data. The company has shown impressive revenue growth, with a 90.57% increase in the last twelve months as of Q3 2023. This growth is even more pronounced on a quarterly basis, with Q3 2023 showing a remarkable 140.79% revenue increase compared to the same quarter in the previous year.
These figures support one of the key InvestingPro Tips for NexGel: "Analysts anticipate sales growth in the current year." This expectation of continued growth might have influenced Zeldis's decision to increase his stake in the company.
Another relevant InvestingPro Tip notes that NexGel has seen a "High return over the last year," with the stock price showing a 77.72% total return over the past year. This strong performance is further emphasized by the fact that the stock is "Trading near 52-week high," currently at 93.52% of its highest price in the past year.
It's worth noting that while these metrics paint a positive picture, investors should also consider that NexGel is "Quickly burning through cash" and is "Not profitable over the last twelve months," according to additional InvestingPro Tips. These factors may explain why insiders like Zeldis are participating in new share offerings to support the company's growth initiatives.
For readers interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for NexGel, providing a deeper understanding of the company's financial health and market position.
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