Vicarious Surgical CFO sells shares to cover tax obligations By Investing.com

Vicarious Surgical Inc.’s (NYSE:RBOT) Chief Financial Officer and Treasurer, William John Kelly, recently sold company shares primarily to cover tax withholding obligations related to the vesting of restricted stock units. The transaction, which took place on August 20, involved the sale of 93 shares of Class A common stock at a weighted average price of $6.2973, totaling approximately $585.

The shares sold by Kelly were part of a larger financial move involving the vesting of restricted stock units that were initially granted on May 19, 2022. According to the footnotes in the company’s latest SEC filing, the sales were executed to satisfy the tax liabilities that arose as a result of the vesting process. The filing also noted that the prices per share for these transactions ranged from $6.16 to $6.51, with the commitment to provide full information about the number of shares sold at each separate price upon request.

In a separate transaction on August 16, which appears to be unrelated to market activity, Kelly transferred 2,812 shares of Class A common stock to his ex-spouse pursuant to a divorce decree. These shares were represented as restricted stock units and did not affect Kelly’s beneficial ownership, as they are no longer owned by him following the transfer.

Following these transactions, Kelly’s ownership in the company stands at 13,893 shares of Class A common stock. Vicarious Surgical Inc., based in Waltham, Massachusetts, operates within the medical devices sector, specializing in orthopedic, prosthetic, and surgical appliances and supplies.

Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s current valuation and future prospects. The recent filings by Kelly are part of the routine disclosures required by company executives and are available for public record to ensure transparency in the financial dealings of corporate insiders.

In other recent news, Vicarious Surgical Inc. has been making significant strides in its robotic system development. The company reported its Q2 financial results, revealing adjusted earnings per share (EPS) of -$2.86, slightly missing the consensus estimate of -$2.72. Operating expenses increased by 17% year-over-year to $17.7 million, largely due to investments in research and development. Despite this, Vicarious Surgical confirmed it is on schedule with the development of its V1.0 system, expected to be completed by Fall 2024.

TD Cowen recently adjusted the price target for Vicarious Surgical, significantly increasing it to $10.00 from the previous $1.50, while maintaining a Buy rating on the stock. This adjustment came as Vicarious Surgical has been effectively managing its cash reserves, projecting a cash burn of around $50 million for the year 2024. On the other hand, Piper Sandler lowered the price target for Vicarious Surgical to $12 from $30, maintaining a neutral stance after reviewing the company’s second-quarter results.

Vicarious Surgical is now on track to deliver key milestones in the coming quarters, including the system integration scheduled for later this year. The successful integration is expected to pave the way for initial clinical patient testing, targeted for 2025. The company also anticipates beginning surgical operations on humans around the same time next year, aligning with previous projections. These are some of the recent developments surrounding Vicarious Surgical.

InvestingPro Insights

As Vicarious Surgical Inc. (NYSE:RBOT) navigates its financial strategies, the recent insider transactions by CFO William John Kelly have drawn attention to the company’s stock performance and balance sheet health. InvestingPro Tips shed light on some critical aspects of RBOT’s financial situation. Notably, the company holds more cash than debt, indicating a solid liquidity position, which is a positive sign for investors considering the company’s capability to meet short-term obligations. This is reinforced by the fact that RBOT’s liquid assets exceed its short-term liabilities.

However, on the flip side, analysts have raised concerns as Vicarious Surgical is quickly burning through its cash reserves and suffers from weak gross profit margins. These challenges are reflected in the company’s stock performance, with a significant return over the last week but a poor showing over the last month and three months. The lack of profitability over the last twelve months and analysts’ anticipation that the company will not be profitable this year could be contributing factors to the stock’s volatility. Moreover, the valuation of RBOT suggests a poor free cash flow yield, further highlighting potential risks for investors.

From a data standpoint, RBOT’s market capitalization stands at 38.27M USD, indicating the size of the company in the market. The P/E ratio is currently at -0.61, suggesting that investors are not expecting earnings growth in the near term. Additionally, the stock’s price has fallen to 20.03% of its 52-week high, with a previous close at 6.3 USD, which may present a buying opportunity for value investors or signify deeper issues that need to be assessed.

For those looking to delve deeper into Vicarious Surgical’s financial health and stock performance, InvestingPro provides a comprehensive set of additional tips. Currently, there are 11 more InvestingPro Tips available, offering valuable insights for informed investment decisions. These can be accessed at https://www.investing.com/pro/RBOT, where investors can find a detailed analysis that may influence their investment strategy regarding RBOT.

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