Insider Buying: CEO Vincent Angotti Acquires 10,000 Shares of AcelRx Pharmaceuticals Inc
On September 11, 2023, Vincent Angotti, the CEO of AcelRx Pharmaceuticals Inc (NASDAQ:ACRX), made a significant insider purchase of 10,000 shares of the company's stock. This move has sparked interest among investors and market watchers, prompting a closer look at the company and its insider trading trends.
Who is Vincent Angotti?
Vincent Angotti is the Chief Executive Officer of AcelRx Pharmaceuticals Inc. He has a wealth of experience in the pharmaceutical industry, having held various leadership roles in several pharmaceutical companies before joining AcelRx. His strategic leadership and industry knowledge have been instrumental in driving the company's growth and success.
About AcelRx Pharmaceuticals Inc
AcelRx Pharmaceuticals Inc is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for use in medically supervised settings. The company's proprietary, non-invasive, sublingual formulation technology delivers sufentanil with consistent pharmacokinetic profiles. AcelRx's primary product is DSUVIA (known as DZUVEO in Europe), approved by the FDA for the management of acute pain severe enough to require an opioid analgesic in adults.
Insider Buying Analysis
Over the past year, the insider, Vincent Angotti, has purchased a total of 10,000 shares and sold 0 shares. This recent purchase marks a significant increase in his holdings, indicating a strong belief in the company's future prospects.
The insider transaction history for AcelRx Pharmaceuticals Inc shows a total of 1 insider buy over the past year, with 1 insider sell over the same timeframe. This trend suggests a balanced insider trading activity.
The relationship between insider buying/selling and stock price is often considered a strong indicator of a company's future performance. In this case, the insider's decision to increase his stake could signal a positive outlook for the company's stock price.
Valuation
On the day of the insider's recent buy, shares of AcelRx Pharmaceuticals Inc were trading at $0.8 apiece, giving the company a market cap of $14.036 million.
With a price of $0.8 and a GuruFocus Value of $1.58, AcelRx Pharmaceuticals Inc has a price-to-GF-Value ratio of 0.51. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the insider's recent purchase of AcelRx Pharmaceuticals Inc shares could be a positive sign for the company's future performance. However, given the stock's current valuation, investors should exercise caution and conduct thorough research before making investment decisions.
This article first appeared on GuruFocus.
