Robert Fried Exercises Options, Realizes $173K

A large exercise of company stock options by Robert Fried, Chief Executive Officer at Niagen Bioscience NAGE was disclosed in a new SEC filing on April 9, as part of an insider exercise.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Fried, Chief Executive Officer at Niagen Bioscience, a company in the Health Care sector, just exercised stock options worth 66,667 shares of NAGE stock with an exercise price of $3.3.

The latest update on Thursday morning shows Niagen Bioscience shares down by 2.32%, trading at $5.9. At this price, Fried’s 66,667 shares are worth $173,334.

About Niagen Bioscience

Niagen Bioscience Inc is the leader in NAD+ (nicotinamide adenine dinucleotide) science and healthy-aging research. It is dedicated to advancing healthspan through precision science and innovative NAD+-boosting solutions. It is is clinically proven to increase NAD+ levels efficiently and effectively, and is the key ingredient powering our suite of Niagen brands.

Financial Milestones: Niagen Bioscience’s Journey

Positive Revenue Trend: Examining Niagen Bioscience’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.41% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 62.48%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Niagen Bioscience’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.09.

Debt Management: With a below-average debt-to-equity ratio of 0.06, Niagen Bioscience adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 54.82, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.73 is above industry norms, reflecting an elevated valuation for Niagen Bioscience’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 46.36, Niagen Bioscience demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes To Focus On

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Niagen Bioscience’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.