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ADMA Biologics, Inc. (NASDAQ:ADMA) Faces Investigations Amid Insider Sales and Auditor Resignation

  • ADMA Biologics, Inc. (NASDAQ:ADMA) is under investigation for potential securities fraud following claims of misleading statements to the market.
  • The company's CEO, Grossman Adam S, sold 48,967 shares at $21.10 each, but still holds a significant stake in the company.
  • Financial metrics indicate a price-to-earnings (P/E) ratio of 72.92 and a current ratio of 7.09, suggesting good short-term financial health despite recent challenges.

ADMA Biologics, Inc. (NASDAQ:ADMA) is a biopharmaceutical company that focuses on developing, manufacturing, and marketing specialty plasma-derived biologics. These products are primarily used for the treatment of immune deficiencies and infectious diseases. ADMA operates in a competitive market alongside companies like Grifols and CSL Behring, which also specialize in plasma-derived therapies.

On November 22, 2024, Grossman Adam S, the director, officer, President, and CEO of ADMA, sold 48,967 shares of the company's common stock at $21.10 per share. This transaction was reported on Form 4, a document used by company insiders to report their transactions in company securities. Despite this sale, Grossman still holds 1,989,007 shares of ADMA's common stock.

ADMA is currently under investigation by The Schall Law Firm for potential securities fraud. The firm is looking into claims that ADMA may have made false and misleading statements to the market. This investigation could have significant implications for the company's stock and its investors, as highlighted by Accesswire. Investors who have incurred losses are encouraged to contact the law firm for further information.

Pomerantz LLP is also investigating ADMA for potential securities fraud. This follows the resignation of ADMA's independent outside auditor, CohnReznick LLP, on October 9, 2024. The announcement of the resignation led to a significant drop in ADMA's stock price, which fell by $3.32 per share, or 16.33%, closing at $17.01 on October 10, 2024. Pomerantz LLP is a leading firm in corporate, securities, and antitrust class litigation.

ADMA's financial metrics reveal a price-to-earnings (P/E) ratio of 72.92, indicating that investors are willing to pay $72.92 for every dollar of earnings. The company's price-to-sales ratio is 13.08, and its enterprise value to sales ratio is 13.14. ADMA's enterprise value to operating cash flow ratio is 58.47, and its earnings yield is 1.37%. The company has a debt-to-equity ratio of 0.44 and a strong current ratio of 7.09, indicating good short-term financial health.