Trevi therapeutics director Meeker sells shares worth over $13,000 By Investing.com

Trevi Therapeutics, Inc. (NASDAQ:), a pharmaceutical company, disclosed in a recent filing that board member David P. Meeker engaged in transactions involving the company’s stock. On August 27, Meeker sold 4,555 shares of common stock at prices ranging from $2.9100 to $2.9500, resulting in a total sale value of approximately $13,352.

The sale was executed at a weighted average price of $2.9314 per share. Following the sale, Meeker’s direct ownership in the company decreased to 352,489 shares. The filing also indicated that earlier on the same day, Meeker acquired 4,555 shares at $1.43 each, amounting to a total acquisition cost of $6,513.

Trevi Therapeutics is known for its focus on the development of treatments for neurologically mediated conditions. The company’s stock transactions by insiders are closely watched by investors, as they can provide insights into the executives’ perspectives on the company’s current valuation and future prospects.

Investors and the market at large often monitor these filings for signs of confidence from company insiders, as their actions can reflect their belief in the company’s performance and outlook. The disclosed transactions provide transparency and allow shareholders to stay informed about significant changes in insider holdings.

In other recent news, Trevi Therapeutics has been making significant strides in its clinical trials for chronic cough and idiopathic pulmonary fibrosis (IPF) treatments. The company reported a net loss of $12.4 million for the quarter in its Second Quarter 2024 Earnings Conference Call, but with funding secured until 2026, the company continues to advance several trials. Analysts from EF Hutton initiated coverage on Trevi Therapeutics with a Buy rating, influenced by the clinical data that suggests a reduced risk for the ongoing trials expected to report results within the next year. The RIVER trial for refractory chronic cough (RCC) is 80% enrolled, with key data expected by the end of 2024, and the CORAL Phase 2b trial for IPF chronic cough is also enrolling, with topline data anticipated in the first half of 2025. EF Hutton’s positive outlook on Trevi is based on the potential success of their lead product, Haduvio, in suppressing coughs related to IPF and RCC. The firm’s financial models apply a probability of success (POS) of 70% for IPF indications and 50% for chronic cough, incorporating these projections into their Free Cash Flow to the Firm (FCFF) discounted EPS and sum-of-the-parts (SOP) models to establish a 12-month price target. These recent developments underscore Trevi Therapeutics’ ongoing commitment to its clinical trials and development plans.

InvestingPro Insights

Trevi Therapeutics, Inc. (NASDAQ:TRVI) has recently seen notable insider transactions, which may influence investor perception. To provide a broader context on the company’s financial health and outlook, we can reference some key metrics and InvestingPro Tips. Trevi currently holds a market capitalization of approximately $210.52 million and has experienced a strong return over the last three months, with a 16.14% increase in stock price. Despite challenges, the company’s liquid assets exceed its short-term obligations, indicating a degree of financial resilience.

InvestingPro Tips for Trevi Therapeutics reveal a mix of cautionary signals and potential strengths. While the company is quickly burning through cash and analysts have revised their earnings downwards for the upcoming period, Trevi also holds more cash than debt, which is a positive sign for potential investors. Moreover, analysts do not anticipate the company will be profitable this year, and it has been reported that net income is expected to drop. These factors are crucial for investors to consider when evaluating the company’s stock transactions and insider activity.

Additional metrics of interest include a Price to Earnings (P/E) ratio of -7.5, reflecting investor sentiment about the company’s earnings potential. The company’s return on assets for the last twelve months as of Q2 2024 stands at -44.37%, underscoring the challenges it faces in generating profit from its assets. Despite these hurdles, Trevi’s stock has seen a year-to-date price total return of 120.15%, which may attract investors looking for growth potential.

For those interested in a deeper analysis, there are more InvestingPro Tips available, which can provide further insight into Trevi’s financial position and market performance. These additional tips can be found on the InvestingPro platform, offering a comprehensive tool for investors to make informed decisions.

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