Allogene Therapeutics, Inc. (NASDAQ:ALLO) reported a significant insider transaction involving Arie Belldegrun, a director of the company. On May 16, 2024, Belldegrun acquired a substantial number of shares, indicating a strong vote of confidence in the biotechnology firm.
Belldegrun, through various entities connected to him, purchased a total of 1,724,137 shares of Allogene Therapeutics common stock at a price of $2.9 per share, amounting to nearly $5 million. Notably, this transaction was part of a registered direct offering, as detailed in the footnotes of the SEC filing.
According to the filing, the shares were acquired by Vida Ventures III, L.P. and Vida Ventures III A, L.P. from Goldman Sachs (NYSE:GS) in the offering. Belldegrun is associated with these entities as a Senior Managing Director and may be deemed to have a beneficial ownership of the shares. However, he has disclaimed beneficial ownership, except to the extent of any pecuniary interest.
The filing also noted that Belldegrun indirectly acquired an additional 344,828 shares of common stock directly from Allogene Therapeutics in the same offering. These shares are held in the name of Bellco Legacy LLC, which is managed by trusts controlled by Belldegrun and Rebecka Belldegrun.
Following the transactions, Belldegrun's indirect ownership in Allogene Therapeutics includes holdings by Bellco Legacy Trust for the benefit of Rebecka Belldegrun and Vida Ventures LLC, where Belldegrun serves as a Senior Managing Director.
This insider activity may be of interest to investors as it reflects the confidence of a key company director in the future prospects of Allogene Therapeutics. The company, which specializes in biological products, has not reported any sales of stock by insiders in the recent filing.
Investors often monitor insider transactions as they can provide insights into the company's performance and insider sentiment. The detailed information regarding the ownership and the nature of the transactions can be found in the footnotes of the SEC filing. The attorney-in-fact for the reporting owner, Earl Douglas, signed the document on May 20, 2024.
InvestingPro Insights
Allogene Therapeutics, Inc. (NASDAQ:ALLO) has been the subject of notable insider transactions, further underscored by the recent purchase by director Arie Belldegrun. In the context of this vote of confidence, it's essential to consider the company's financial health and market performance through the lens of InvestingPro data and tips.
InvestingPro data reveals a market capitalization of $540.75 million for Allogene, suggesting a moderate size within the biotech industry. Notably, the company's current Price to Earnings (P/E) ratio stands at -1.46, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.97, indicating that the company is not currently profitable. This is further evidenced by a significant gross profit margin deficit of -246951.72% for the same period, underlining the challenges Allogene faces in achieving profitability.
Despite these financial headwinds, InvestingPro Tips highlight that Allogene holds more cash than debt on its balance sheet, which is a positive sign of the company's liquidity and financial stability. Moreover, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, potentially indicating a buying opportunity for investors who believe in the company's long-term prospects.
Additionally, it's worth noting that seven analysts have revised their earnings upwards for the upcoming period, a potential signal that the sentiment around Allogene's future earnings is improving. However, with analysts also anticipating a sales decline in the current year and not expecting the company to be profitable this year, the picture remains mixed.
For investors intrigued by the insider buying and looking for more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/ALLO. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and access a total of 15 tips that could help inform your investment decisions regarding Allogene Therapeutics.
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