Aadi Bioscience executive chairman sells over $90k in company stock

Aadi Bioscience, Inc. (NASDAQ:AADI) has reported that Executive Chairman Neil Desai sold a total of $90,614 worth of company stock over two consecutive days. The transactions were executed under a prearranged trading plan known as a Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.

On April 1, 2024, Desai sold 17,772 shares at a weighted average price of approximately $2.3127, with individual sales prices ranging from $2.28 to $2.35. The following day, Desai continued to divest his holdings, selling an additional 22,228 shares at a weighted average price of $2.2275, with sales in the price range of $2.185 to $2.28.

These sales are part of Desai's planned divestiture of stock and were carried out through indirect ownership via the Anishka Family Trust, of which Desai is a trustee. The reported transactions reduced Desai’s indirectly held shares, but he still retains a significant stake in the company through direct and other indirect holdings.

Investors often monitor insider transactions for insights into executive confidence in the company's future performance, although such sales can also reflect personal financial management or diversification strategies.

Aadi Bioscience specializes in pharmaceutical preparations and is incorporated in Delaware. The company's business address is in Pacific Palisades, California.

Aadi Bioscience, Inc. (NASDAQ:AADI) has recently been under the investor's microscope due to executive stock sales, and a look at key metrics from InvestingPro provides a clearer picture of the company's financial health. AADI's market capitalization stands at a modest $53.77 million, reflecting the size of the company within the biopharmaceutical space. Despite a notable revenue growth of 60.06% over the last twelve months as of Q4 2023, the company's gross profit margin tells a different story, with a negative value of -112.44%, indicating that Aadi Bioscience is spending more to produce its goods than it's earning from them.

One of the InvestingPro Tips that stands out is that analysts have revised their earnings upwards for the upcoming period, suggesting that there might be a positive outlook on the company's future earnings potential. Additionally, Aadi Bioscience holds more cash than debt on its balance sheet, which could provide some financial stability in the short term. However, it's worth noting that the company is not expected to be profitable this year, and the valuation implies a poor free cash flow yield, as per additional InvestingPro Tips.

Investors considering Aadi Bioscience as part of their portfolio should take into account that the stock has taken a significant hit over the last year, with a price total return of -70.82%. Despite this, there has been a strong return over the last month, as indicated by a 13.54% price total return. These contrasting short-term and long-term performances could be important for potential investors to consider.

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For those looking for more detailed analysis and tips, there are additional InvestingPro Tips available for Aadi Bioscience. To gain access to these insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/AADI to see the full range of tips and make more informed decisions backed by professional analysis.

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