Vericel chief legal officer Sean Flynn sells $219,822 in stock

Vericel Corp (NASDAQ:VCEL) Chief Legal Officer Sean Flynn recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Flynn sold 3,835 shares of Vericel common stock on February 20, 2025, at a price of $57.32 per share. This transaction amounted to a total value of $219,822. The sale comes as Vericel trades at notably high multiples, with a P/E ratio of 726x and an EV/EBITDA of 646x, according to InvestingPro data.

Following this sale, Flynn retains ownership of 756 shares of Vericel common stock. The sale was executed as part of an automatic sale plan under Rule 10b5-1, which Flynn adopted on March 13, 2024. The timing is notable as the stock has experienced an 8.9% decline over the past week, though it maintains a positive 9.9% return over the past year.

In addition to the stock sale, Flynn also acquired 35,000 stock options and 14,000 restricted stock units (RSUs) on the same day. The stock options have a conversion price of $54.31 and are set to vest in equal quarterly installments over the next four years starting February 20, 2025. Meanwhile, the RSUs are scheduled to vest in four annual installments beginning on February 20, 2026, with no expiration date for this type of award.

These transactions reflect a mix of strategic financial planning and long-term investment in Vericel, as Flynn continues to hold a substantial interest in the company through his stock options and RSUs.

In other recent news, Vericel Corporation reported preliminary fourth-quarter revenue figures for 2024, ranging between $75.2 million and $75.7 million, which did not meet analyst expectations of $77.9 million. Despite this shortfall, Vericel’s MACI product, used for treating cartilage defects in the knee, generated revenue between $68.2 million and $68.7 million, slightly exceeding some analyst estimates. The company also highlighted a significant increase in the number of MACI implants and trained surgeons, indicating growth potential for 2025. Meanwhile, Vericel’s burn franchise, including products like Epicel and NexoBrid, reported approximately $7 million in revenue for the fourth quarter.

Analysts at Canaccord Genuity and H.C. Wainwright have maintained a Buy rating on Vericel, with Canaccord raising its price target to $67, citing strong mid-term targets for margins and profitability. Truist Securities also increased its price target for Vericel to $67, underscoring confidence in the company’s growth trajectory and potential for increased revenue and profitability. Vericel’s management has provided guidance for a 20%-23% revenue growth in 2025, with expected total revenues of $289 million for the year. Additionally, Vericel plans to submit an Investigational New Drug application for MACI Ankle in the first half of 2025 and begin a pivotal Phase 3 study later in the year.

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