Cara Therapeutics, Inc. (NASDAQ:CARA) reported a recent transaction by its President and CEO, Christopher Posner, who sold a total of 3,936 shares of the company's common stock. The sale, which took place on May 2, 2024, amounted to $2,952 in total value, with the shares being sold at an average price of $0.75 each.
The transaction was part of a pre-arranged "sell to cover" plan, which Posner had adopted on November 2, 2022, in compliance with Rule 10b5-1. This plan is typically used to satisfy tax withholding obligations that arise from the vesting of restricted stock units. It is important to note that such sales are not indicative of discretionary trading by the reporting individual.
Investors interested in the specific prices at which the shares were sold should note that the sales were executed in multiple transactions with prices ranging from $0.75 to $0.76 per share. Posner has agreed to provide full information regarding the number of shares sold at each separate price within this range, upon request.
Following the sale, Posner's remaining direct ownership in Cara Therapeutics stands at 176,585 shares. The company, which is incorporated in Delaware and operates in the pharmaceutical preparations industry, continues to engage in the development of product candidates that are designed to alleviate pain and pruritus by focusing on kappa opioid receptors.
For further details regarding the transaction, Cara Therapeutics and any interested parties may request additional information from the reporting person.
InvestingPro Insights
Amid recent transactions by Cara Therapeutics' (NASDAQ:CARA) executives, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Cara Therapeutics holds a market capitalization of $43.19 million as of the last twelve months ending Q4 2023. Despite the challenges faced by the company, including a significant sales decline of approximately 49.92% during the same period, the market has witnessed a robust 34.89% return on the company's stock price over the last three months.
InvestingPro Tips suggest that Cara Therapeutics is navigating through a period of financial strain. The company is quickly burning through cash, and analysts do not expect Cara Therapeutics to be profitable within the current year. Moreover, the valuation of the company implies a poor free cash flow yield, which is a critical factor for investors seeking long-term growth potential. Despite these concerns, the company does have some financial positives, such as holding more cash than debt on its balance sheet and liquid assets that exceed short-term obligations.
Investors considering Cara Therapeutics should also be aware that the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams. For those looking for a comprehensive list of insights, InvestingPro provides additional tips that can be accessed at https://www.investing.com/pro/CARA. To further enrich your investment strategy, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can find a total of 11 InvestingPro Tips to guide you through your investment decisions in Cara Therapeutics.
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