In a recent transaction, Pascal Touchon, President and CEO of Atara Biotherapeutics, Inc. (NASDAQ:ATRA), sold 81,506 shares of company stock. The shares were sold at an average price of $0.617, amounting to a total value of approximately $50,289. This transaction was executed automatically to cover tax withholding obligations related to the vesting of restricted stock units, as per the award agreement provisions.
The stock sale took place on May 16, 2024, and was part of a larger group sale conducted by a broker on behalf of Atara employees to satisfy their tax liabilities. Following the sale, Touchon's direct ownership in the company stands at 1,829,146 shares.
Investors often monitor insider transactions as they can offer insights into the executive's view of the company's stock value and future performance. However, sales to cover tax obligations are a common practice and may not necessarily indicate a lack of confidence in the company.
Atara Biotherapeutics, headquartered in South San Francisco, California, operates in the biotechnology industry focusing on developing treatments for patients with serious diseases including cancer and autoimmune disorders.
InvestingPro Insights
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) has experienced notable market activity, as highlighted by recent insider transactions. The InvestingPro data reveals a market capitalization of $85.5 million, reflecting the company's current market valuation. Despite a challenging period, analysts foresee potential sales growth in the current year, which could be a positive indicator for investors keeping an eye on revenue streams.
The company's stock has seen a significant return over the last week, with a 17.36% price total return, suggesting a spike in investor interest. This is in contrast with a broader 1-year price total return of -66.35%, indicating a volatile period for shareholders. Moreover, Atara Biotherapeutics has been grappling with weak gross profit margins, as evidenced by a gross profit margin of -504.47% for the last twelve months as of Q1 2024.
InvestingPro Tips indicate that Atara is quickly burning through cash and that short-term obligations exceed liquid assets. This financial position warrants careful consideration by potential investors. Additionally, with analysts not anticipating the company to be profitable this year, those interested in the company's performance should monitor these developments closely.
For investors seeking a deeper analysis and more InvestingPro Tips, including whether Atara operates with a moderate level of debt or the implications of its valuation on free cash flow yield, visit https://www.investing.com/pro/ATRA. There are 10 additional tips available on InvestingPro, which could provide further insights into the company's financial health and prospects. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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