Allovir, Inc.'s (NASDAQ:ALVR) Chief Accounting Officer, Brett R. Hagen, recently sold company stock primarily to cover tax withholding obligations related to the vesting of restricted stock units. The transaction, which was not at the discretion of Hagen, involved the sale of 281 shares of common stock at an average price of $0.772 per share, totaling approximately $216.
The shares were sold on April 2, 2024, and the sale was automatically triggered to satisfy tax requirements. The prices at which the shares were sold ranged from $0.7513 to $0.7801. Following this transaction, Hagen still owns 78,572 shares of Allovir, indicating a continued investment in the company's future.
Investors often monitor insider sales as they can provide insights into executives' perspectives on the company's value. However, it's important to note that sales to cover tax obligations are a common practice and do not necessarily reflect a change in an executive's outlook on the company's prospects.
Allovir, Inc., headquartered in Waltham, Massachusetts, operates in the biotechnology industry, focusing on developing treatments for life-threatening viral diseases. The company has been known previously as ViraCyte, Inc. before changing its name to Allovir, Inc. in September 2018.
InvestingPro Insights
Amid the recent insider sale by Allovir, Inc.'s (NASDAQ:ALVR) Chief Accounting Officer, the company's financial metrics and analyst outlook provide a broader context for investors. Allovir currently holds a market capitalization of $84.83 million, indicating its size within the biotechnology sector. The company's balance sheet reflects a healthy liquidity position, with cash holdings exceeding its debt obligations, which is a positive sign for investors concerned about financial stability.
Despite the sale being for tax purposes, Allovir's stock performance has seen significant volatility. Over the last year, the stock price has decreased by approximately 79.8%, with a notable 62.56% drop in the past six months. This trend suggests that investors may have concerns about the company's future profitability, which is echoed by analysts who do not expect Allovir to be profitable this year. The company's price-to-book ratio stands at 0.58 as of the last twelve months ending Q4 2023, potentially indicating that the stock is undervalued relative to its assets.
However, it's important to consider that Allovir's gross profit margins are weak, and the company has not been profitable over the last twelve months. These factors, combined with the lack of dividend payments to shareholders, might weigh on investor sentiment. For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available on InvestingPro, which can help in making more informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and access the full list of tips and data points that could be crucial for evaluating Allovir's potential.
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