In recent trading activity, Sethuraman Natarajan, the Chief Scientific Officer of Entrada Therapeutics, Inc. (NASDAQ:TRDA), has sold a total of 18,980 shares of the company's common stock. The transactions, which occurred over three separate days, amounted to a total value of over $287,694.
On May 16, 2024, Natarajan sold 1,000 shares at a price of $15.00 per share. Following this transaction, he sold another 8,305 shares on May 17, at a slightly higher price of $15.1416 each. The selling spree concluded on May 20, with 9,675 shares being sold at a weighted average price of $15.188 per share. These shares were sold in multiple transactions at prices ranging from $15.00 to $15.34.
The sales were conducted under a Rule 10b5-1 trading plan, which Natarajan had adopted on December 14, 2023. This type of plan allows company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
After these transactions, Natarajan still holds a substantial number of shares in Entrada Therapeutics, with his ownership standing at 190,052 shares following the last reported sale.
Entrada Therapeutics, based in Boston, Massachusetts, is a biopharmaceutical company that operates in the pharmaceutical preparations industry. The company, formerly known as CycloPorters, Inc., focuses on developing treatments for a variety of diseases.
Investors and market watchers often pay close attention to insider selling and buying, as it can provide insights into an insider's perspective on the company's current valuation and future prospects.
InvestingPro Insights
In light of the recent insider selling by Sethuraman Natarajan of Entrada Therapeutics, Inc. (NASDAQ:TRDA), it's important for investors to consider the financial health and market performance of the company. According to InvestingPro data, Entrada Therapeutics currently holds a market capitalization of 475.98 million USD, with a P/E ratio of 19.94, reflecting the company's valuation in relation to its earnings. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands slightly higher at 20.71.
With a robust revenue growth of 544.79% over the last twelve months as of Q1 2024, Entrada Therapeutics has shown a remarkable increase in its financial performance. This growth is further highlighted by the company's impressive gross profit margin of 35.29% during the same period. Additionally, Entrada Therapeutics has enjoyed a strong return over the last month, with a 1-month price total return of 23.37%.
Two InvestingPro Tips that are particularly relevant in this context are that Entrada Therapeutics holds more cash than debt on its balance sheet, and that two analysts have revised their earnings upwards for the upcoming period. These insights suggest a positive financial outlook for the company, potentially countering concerns raised by the insider selling. It's worth noting that Entrada Therapeutics does not pay a dividend to shareholders, which may influence the investment strategies of income-focused investors.
For those interested in a deeper analysis, there are 11 additional InvestingPro Tips available, which can provide further insights into Entrada Therapeutics' financial health and market performance. To access these, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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