Nexgel director Henry Scott Robert buys $25,000 in company stock By Investing.com

Nexgel, Inc. (OTC:NXGL), a company specializing in surgical and medical instruments and apparatus, has reported a recent stock purchase by director Henry Scott Robert. On August 23, 2024, Mr. Robert acquired 10,000 shares of Nexgel common stock, investing a total of $25,000 at a price of $2.50 per share.

This transaction was disclosed in a regulatory filing with the Securities and Exchange Commission. According to the filing, following the purchase, Henry Scott Robert now owns 145,735 shares of the company directly. The report also noted that the director is subject to a 180-day lock-up period, during which he has agreed not to sell any shares acquired in the transaction or shares underlying the warrant.

The purchase by Mr. Robert is part of a registered direct offering by Nexgel, indicating a potential boost in confidence from the director in the company’s prospects. Investors often monitor insider buying as it may reflect the executives’ belief in the company’s future performance.

Nexgel’s stock transactions by insiders are closely watched by investors seeking insights into the company’s health and potential future direction. The recent purchase by a company director can be a signal to the market, suggesting that insiders may view the stock as undervalued or anticipate positive developments for the business.

For those interested in Nexgel’s insider transactions, the details of these and other trades can be found in the company’s SEC filings.

In other recent news, NEXGEL, a producer of hydrogel products, has reported a significant increase in revenue for the second quarter of 2024. The 23.4% year-over-year increase resulted in a revenue of $1.44 million, largely due to the robust performance of its Branded Consumer Products, especially the Silly George brand, and the expansion of its Texas manufacturing facility. Despite this, the company experienced a net loss of $979,000 for the quarter.

NEXGEL completed a $1.11 million financing round and has entered into a supply agreement with Cintas Corporation (NASDAQ:), which is expected to contribute to future revenues. Projections for Q3 and Q4 revenues are $2.2 million and $2.6 million, respectively, with revenue from a partnership with AbbVie (NYSE:) anticipated to commence in Q1 2025.

These recent developments follow an increase in advertising and marketing expenses, which led to higher selling, general, and administrative costs. Additionally, NEXGEL reported a gross profit of $410,000 for Q2, with a margin of 28.5%. Despite the net loss, the company maintains a cash balance of approximately $1.1 million as of June 30, 2024.

InvestingPro Insights

Nexgel, Inc. (OTC:NXGL) has recently seen noteworthy insider activity, with director Henry Scott Robert increasing his stake in the company. This move may signal confidence in the company’s future, despite the current financial metrics that suggest some challenges ahead. According to InvestingPro data, Nexgel’s market capitalization stands at $18.95 million, with a negative price-to-earnings (P/E) ratio of -4.61, indicating that the company is not currently profitable.

The company’s revenue has shown significant growth over the last twelve months, with a 74.04% increase as of Q2 2024. This growth could be a factor in the director’s decision to invest further in Nexgel. Additionally, the stock has had a strong return over the last three months, with a 29.05% price total return, which may also underpin the director’s confidence in the company’s stock performance.

InvestingPro Tips for Nexgel highlight several key points for investors to consider. The company is quickly burning through cash and analysts do not anticipate it will be profitable this year. Moreover, Nexgel operates with a moderate level of debt and has not been profitable over the last twelve months. It’s also worth noting that the company does not pay a dividend to shareholders, which could influence investment decisions for those seeking income-generating stocks.

For investors looking for a deeper dive into Nexgel’s financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/NXGL. These tips can provide further insights into the company’s performance and potential investment opportunities.

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