Protagonist Therapeutics CEO Dinesh Patel sells $1.23m in stock By Investing.com

Protagonist Therapeutics, Inc. (NASDAQ:) President and CEO Dinesh V. Patel has sold a portion of his company shares, according to a recent filing with the U.S. Securities and Exchange Commission. The transaction, which took place on June 7, involved the sale of 35,000 shares of common stock at a weighted average price of $35.19 per share, totaling approximately $1.23 million.

The shares were sold in multiple transactions with prices ranging between $35.00 and $35.53, as detailed in the footnotes of the SEC filing. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Dr. Patel on March 20, 2023. These plans allow company insiders to set up a predetermined schedule for selling shares at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.

Following the sale, Dr. Patel’s remaining ownership in Protagonist Therapeutics stands at 515,415 shares of common stock. The filing also noted that this figure includes 825 shares that Dr. Patel acquired under the company’s 2016 Employee Stock Purchase Plan on March 9, 2024.

Investors often monitor insider sales as they may provide insights into an executive’s confidence in the company’s current valuation and future prospects. However, it is not uncommon for executives to sell shares for reasons that may not necessarily reflect their outlook on the company, such as diversifying their investment portfolio or meeting personal financial objectives.

Protagonist Therapeutics, based in Newark, California, is a biopharmaceutical company focused on developing peptide-based new molecular entities for various diseases. The company’s stock performance and insider transactions continue to be of interest to shareholders and potential investors as they assess the company’s value and growth potential.

In other recent news, Protagonist Therapeutics has seen its target price raised to $39 by JPMorgan, following a discussion with Protagonist’s CEO. This conversation highlighted the company’s ongoing partnership with Johnson & Johnson on the JNJ-2113 program, which is enrolling participants at a faster pace than initially expected. The completion of the Phase 2b ANTHEM-UC trial and the ICONIC-ADVANCE-2 trial has been advanced to the fourth quarter of 2024 and February 2025, respectively.

The CEO of Protagonist expressed confidence in JNJ-2113’s potential, particularly for treating ulcerative colitis. If the ANTHEM trial yields positive results, the IBD program may progress rapidly to a Phase 2b/3 trial in Crohn’s disease.

Protagonist’s financial projections anticipate risk-adjusted peak royalty revenues of approximately $600 million by 2037. The company also plans to nominate a new oral IL-17 program by the end of the year and unveil a new oral heme program in the third quarter.

JPMorgan anticipates increased investor attention as Protagonist approaches significant milestones and potential royalty streams from JNJ-2113 and rusfertide. The firm also recognizes potential upside from Protagonist’s early-stage pipeline, which includes treatments targeting IL-17 and heme.

InvestingPro Insights

As Protagonist Therapeutics, Inc. (NASDAQ:PTGX) makes headlines with insider stock sales, investors are keen to understand the underlying financial health and future prospects of the company. Recent data from InvestingPro provides a clearer picture of the company’s current standing and what analysts are expecting. With a market capitalization of approximately $1.99 billion and a robust revenue growth of over 36,565% in the last twelve months as of Q1 2024, Protagonist Therapeutics presents a compelling narrative of growth.

The company’s financial strength is further underscored by its impressive gross profit margin, which stands at 100%, and an operating income margin of 47.21% for the same period. Additionally, the stock has experienced significant appreciation, trading near its 52-week high with price movements reflecting a 95.5% reach of this peak. The positive trajectory is also evidenced by strong returns, with a 13.17% price total return over the last week and a 17.5% return over the past month.

InvestingPro Tips highlight that Protagonist Therapeutics holds more cash than debt on its balance sheet, which is a reassuring sign for investors considering the company’s financial stability. Moreover, analysts predict the company will be profitable this year, which may further bolster investor confidence following the insider sale. For those looking to delve deeper into the company’s financials and future outlook, InvestingPro offers a wealth of additional tips. There are currently 12 more InvestingPro Tips available for Protagonist Therapeutics, which can be accessed at: https://www.investing.com/pro/PTGX. Investors interested in leveraging these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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