Actuate therapeutics insider sells $150,000 worth of shares By Investing.com

In a recent transaction, an insider at Actuate Therapeutics, Inc. (NASDAQ:ACTU) sold shares of the company’s stock. The sale, which took place on August 14, 2024, involved 18,750 shares at the price of $8.00 each, totaling $150,000.

The transaction was disclosed in a filing with the Securities and Exchange Commission, which also revealed a series of acquisitions made by entities associated with Actuate Therapeutics. These acquisitions were a result of automatic conversions of preferred stock into common shares upon the closing of the company’s initial public offering (IPO). Notably, these conversion transactions did not involve any cash exchange, and thus were reported with a transaction total and price of $0.

Todd Thomson, the Chief Financial Officer/Chief Operating Officer of Kairos Venture Investments, LLC, and a director on the board of Actuate Therapeutics, was associated with the reported transactions. The shares were held by various entities managed by Kairos Venture Investments, LLC, including Kairos Venture Partners II, L.P., Kairos Venture Opportunities I, L.P., Kairos SPV Fund, LLC, and Kairos-Actuate SPV, L.P.

In addition to the sale, there was also an automatic cashless exercise of a warrant to purchase 28,464 shares of common stock at $5.27 per share. This resulted in the withholding of 18,750 shares to cover the exercise price and the issuance of 9,714 shares to Kairos Venture Partners II, L.P. This transaction amounted to a total of $150,005.

Actuate Therapeutics, Inc. is a pharmaceutical company, with a focus on developing treatments that address unmet medical needs. The company’s stock is traded on the NASDAQ stock exchange under the ticker symbol ACTU.

This filing underscores the ongoing financial transactions that occur among company insiders and associated investment entities, providing investors with transparency regarding the movements of significant shareholders and company executives.

InvestingPro Insights

Actuate Therapeutics, Inc. (NASDAQ:ACTU) has been navigating the financial markets with several challenges as reflected in the recent insider transactions. According to InvestingPro data, the company’s market capitalization stands at $170.04 million. However, a deeper dive into the company’s financial performance reveals some areas of concern for investors. Notably, Actuate Therapeutics has been operating without profitability over the last twelve months and does not pay a dividend to shareholders, indicating potential risks for income-focused investors.

An InvestingPro Tip highlights that the company suffers from weak gross profit margins, which could be a red flag for those looking at the company’s ability to turn revenues into profits. Additionally, the short-term obligations of Actuate Therapeutics exceed its liquid assets, which may raise questions regarding the company’s financial agility in the near term. It’s worth noting that the company operates with a moderate level of debt, which could be a double-edged sword, potentially offering leverage for growth but also posing risks if not managed properly.

Investors interested in the valuation metrics will find that the company’s P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 stands at -6.08, suggesting that the market currently does not expect earnings growth in the near future. The price to book ratio during the same period is -1.54, which may indicate that the stock is undervalued relative to its assets, depending on the industry context and investor perspective.

For those considering the stock’s recent performance, Actuate Therapeutics has seen its price stay relatively stable, with a 1.05% total return over various time frames, from one week to one year as of a recent 2024 date. This steadiness could be interpreted in multiple ways, but it certainly adds a layer of context to the insider transactions reported.

For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available on the platform, providing deeper insights into Actuate Therapeutics’ financial health and stock performance.

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