Compass Pathways plc (NASDAQ:CMPS), a leading pharmaceutical company, has reported a series of stock transactions by director Ekaterina Malievskaia, according to a recent SEC filing. Malievskaia has sold a significant number of shares, resulting in a total sale value of over $700,000.
The transactions, which took place on March 12 and 13, involved the sale of Ordinary Shares represented by American Depositary Shares. On March 12, Malievskaia sold a total of 31,480 shares at a weighted average price of $10.5803 per share. The following day, she continued to divest, selling another 34,406 shares at a weighted average price of $10.8049 per share. The sales were conducted in multiple transactions, with prices ranging from $10.36 to $10.765 on the first day, and between $10.65 to $11.07 on the second day.
The reported sales occurred automatically pursuant to a Rule 10b5-1 trading plan, which was adopted by Malievskaia on August 23, 2023. Such plans allow company insiders to establish pre-arranged plans to buy or sell company stock at predetermined times to avoid accusations of insider trading.
It is noted that some of the shares sold were held directly by Malievskaia, while others were held indirectly by her spouse, George Jay Goldsmith. Despite their marital status, both parties have expressly disclaimed beneficial ownership of each other’s shares in Compass Pathways.
Following the transactions, Malievskaia’s direct holdings in the company have decreased, but she still retains a significant stake in Compass Pathways. Investors often monitor insider transactions as they can provide insights into the executives' perspective on the company’s future prospects.
Compass Pathways continues to be a key player in the pharmaceutical sector, focusing on the development of drug candidates for mental health conditions. The company's stock performance and ongoing developments are closely watched by investors in the healthcare industry.
InvestingPro Insights
As Compass Pathways plc (NASDAQ:CMPS) makes headlines with recent insider stock transactions, investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, Compass Pathways holds a market capitalization of approximately $628.79 million. Despite a challenging period, the stock has demonstrated resilience with a strong return of 22.44% over the last three months as of Q1 2023.
One of the key InvestingPro Tips points out that Compass Pathways has more cash than debt on its balance sheet, which can be a positive sign of financial stability. However, it is also noted that the company is quickly burning through cash, which is a concern for long-term sustainability. The stock price has experienced significant volatility, with a notable 9.97% dip in the last week alone.
Investors considering Compass Pathways should be aware that analysts do not anticipate the company will be profitable this year, as reflected by a negative P/E ratio of -4.20. Furthermore, the company does not pay a dividend to shareholders, which might be a consideration for income-focused investors. For those looking to delve deeper into the financial nuances of Compass Pathways, additional insights can be found on InvestingPro, which currently lists over 6 additional InvestingPro Tips for the company. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to exclusive data that can empower your investment decisions.
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