Atara Biotherapeutics Inc . (NASDAQ:ATRA) reported that Eric J. Hyllengren, the company's Executive Vice President and Chief Financial Officer, sold a total of 28,648 shares of common stock. The transactions occurred on May 16, 2024, with the shares being sold at an average price of $0.617, resulting in a total value of approximately $17,675.
The sale was conducted automatically to satisfy tax withholding obligations related to the vesting of previously granted restricted stock units, as per the sale-to-cover provision outlined in the award agreement. The price at which the shares were sold represents the weighted average price of all shares sold by a broker over two days, May 16 and May 17, on behalf of a group of employees to cover their withholding tax liabilities.
Following this transaction, Hyllengren's direct ownership in the company stands at 645,671 shares of common stock. The sale was disclosed in a regulatory filing with the Securities and Exchange Commission.
Investors often monitor insider transactions such as these for insights into executive confidence and company performance. Atara Biotherapeutics, based in Thousand Oaks, California, is a biopharmaceutical company that specializes in developing treatments for diseases in areas of significant unmet medical need.
InvestingPro Insights
Atara Biotherapeutics Inc. (NASDAQ:ATRA) has been navigating a complex market environment, reflected in the real-time metrics provided by InvestingPro. The company's market capitalization currently stands at $85.5 million, suggesting a relatively small cap status in the biopharmaceutical industry. Despite recent insider transactions, Atara's stock performance has exhibited a significant return over the past week, with a 17.36% price total return, indicating a potential uptick in investor sentiment.
InvestingPro Tips highlight that while analysts expect sales growth in the current year, they do not anticipate the company will be profitable within the same timeframe. Moreover, Atara is facing challenges with cash burn, as it is quickly depleting its cash reserves. This is further underscored by the company's short-term obligations exceeding its liquid assets, a situation that investors should monitor closely.
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With the next earnings date set for August 5, 2024, stakeholders and potential investors will be keen to see if the company's strategic initiatives align with the anticipated sales growth and whether they can address the concerns surrounding profitability and cash burn.
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