Athira Pharma, Inc. (NASDAQ:ATHA) Chief Financial and Business Officer, Andrew Gengos, recently engaged in transactions involving the company's stock, according to a new SEC filing. Gengos sold 1,272 shares of common stock on September 5, 2024, at an average price of $0.566, totaling approximately $719. The sales were executed in multiple transactions at prices ranging from $0.5505 to $0.5751.
The stock sale occurred in connection with the vesting of restricted stock units (RSUs) and was part of a mandatory tax withholding procedure under the company's "sell to cover" policies. This type of transaction is typical when RSUs vest, as companies often withhold a portion of the shares to cover the executive's tax obligations.
In addition to the sale, Gengos also acquired shares through two separate transactions. The first acquisition was a purchase of 10,000 shares at $1.34 per share, part of the company's Employee Stock Purchase Plan, amounting to $13,400. The second involved the vesting of 5,000 RSUs on September 3, 2024, coinciding with the company's completion of the public readout of its LIFT-AD Phase 2/3 clinical trial. The price for these shares was reported as $0.0 because they were granted as part of the executive's compensation package and not purchased on the open market.
Following these transactions, Gengos's ownership in Athira Pharma stands at 97,532 shares. The recent activity reflects routine executive compensation and tax obligation management, providing insight into the executive's equity movements within the company.
In other recent news, Athira Pharma's Phase 2 LIFT-AD study for fosgonimeton, a potential Alzheimer's disease treatment, did not meet primary and secondary efficacy endpoints. Despite this, Mizuho maintained an Outperform rating on Athira Pharma's shares, citing the safety profile and potential of the drug based on positive biomarker signals. However, BTIG downgraded Athira Pharma's stock from Buy to Neutral, expressing concerns over the drug's development path in a challenging trial environment.
In other developments, Athira Pharma presented new preclinical data at the Alzheimer’s Association International Conference 2024, indicating that fosgonimeton may reduce key Alzheimer’s disease-related protein pathology and protect neurons from amyloid-β toxicity. Additionally, the company reached a preliminary settlement in a shareholder derivative lawsuit, which includes the implementation of corporate governance reforms and the coverage of legal fees and expenses. These are among the recent developments that reflect Athira Pharma's ongoing commitment to advancing its pipeline of therapeutic candidates.
InvestingPro Insights
Amidst the recent transactions by Athira Pharma's (NASDAQ:ATHA) Chief Financial and Business Officer, Andrew Gengos, the company's financial health and stock performance metrics provide additional context for investors. With a market capitalization of $21.8 million, Athira Pharma is navigating through challenging financial waters. The company's Price to Earnings (P/E) ratio stands at -0.19, reflecting its current lack of profitability, a situation echoed by the company's negative EBITDA of -$120.43 million for the last twelve months as of Q2 2024.
InvestingPro Tips highlight several critical aspects for potential investors to consider. Athira Pharma is recognized for holding more cash than debt on its balance sheet, which can be a reassuring sign of financial stability. However, the company is also quickly burning through its cash reserves, which could raise concerns about its long-term financial sustainability. Additionally, the Relative Strength Index (RSI) suggests that Athira Pharma's stock is currently in oversold territory, which may interest investors looking for potential entry points in the market.
For those interested in the company's stock volatility, Athira Pharma's shares have experienced significant price fluctuations, with the stock price having taken a considerable hit over the last week. This is consistent with the broader trend observed over the last six months, where the stock has seen an 84.58% decline in total return. The company's shares are trading near their 52-week low, at 13.08% of the 52-week high, with the previous closing price at $0.61. These metrics underscore the stock's high volatility and the challenges faced by the company in the current market.
For investors seeking a more comprehensive analysis, InvestingPro offers a suite of additional tips. As of now, there are 16 more InvestingPro Tips available on Athira Pharma, which can be accessed for deeper insights into the company's financial health and stock performance.
Investors may also be interested in the company's next earnings date, scheduled for November 7, 2024, which could provide further clarity on Athira Pharma's operational progress and strategic direction. With the fair value, as assessed by analysts, at $4, there is a notable discrepancy between current trading levels and potential valuation, which could imply an opportunity for valuation-driven investors.
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