Walter S. Woltosz, a director at Simulations Plus , Inc. (NASDAQ:SLP), has sold 20,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at prices ranging from $27.22 to $27.97, totaling approximately $553,200. Following this transaction, Woltosz holds 3,462,584 shares directly. This sale was conducted automatically under a Rule 10b5-1 plan, which allows insiders to set up a trading plan for selling stocks they own. Additionally, Woltosz acquired 992 shares at no cost as part of his compensation as an independent director, issued under the company’s 2021 Equity Incentive Plan.
In other recent news, Simulations Plus has been making significant strides in both technological advancements and financial performance. The company secured a grant from the U.S. Food and Drug Administration for a project aimed at enhancing the understanding and prediction of amorphous solid dispersion formulations. This collaboration, involving the University of Strathclyde and InnoGI Technologies, is expected to expedite the time-to-market for ASD products.
Simulations Plus also reported robust financial results for fiscal year 2024, with total revenue up by 18% to $70 million and a fourth-quarter revenue rise of 19% to $18.7 million. The company's recent acquisitions of Pro-ficiency and Immunetrics have broadened its market reach and improved its software offerings. In light of these developments, Simulations Plus projects a revenue of $90 million to $93 million for fiscal year 2025, indicating a growth of 28% to 33% year-over-year.
However, the fourth-quarter revenue fell short of the $19.7 million expected by BTIG and the consensus estimate. Despite this, BTIG maintains a Buy rating on the stock, albeit with a reduced price target from $60.00 to $50.00. These recent developments reflect the company's ongoing financial performance and market expectations.
InvestingPro Insights
In light of Walter S. Woltosz's recent stock sale, it's worth examining some key financial metrics and insights for Simulations Plus, Inc. (NASDAQ:SLP). According to InvestingPro data, the company's market capitalization stands at $551.65 million, reflecting its current market valuation.
Simulations Plus has demonstrated solid revenue growth, with a 17.52% increase in the last twelve months as of Q4 2024, and an even stronger quarterly revenue growth of 19.42% in Q4 2024. This growth trajectory aligns with the company's ability to maintain profitability, as indicated by an InvestingPro Tip noting that analysts predict the company will be profitable this year.
Despite the recent insider sale, it's important to note that Simulations Plus operates with a moderate level of debt, which could provide financial flexibility. Additionally, the company's liquid assets exceed short-term obligations, suggesting a healthy balance sheet position.
Investors should be aware that SLP is trading at a high earnings multiple, with a P/E ratio of 55.62. This valuation metric, combined with the fact that the stock has taken a big hit over the last week (down 7.6%), may indicate that the market is reassessing the company's growth prospects or that there might be an opportunity for value investors.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Simulations Plus, providing a deeper understanding of the company's financial health and market position.
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