Neurocrine (NASDAQ:NBIX) Biosciences Inc. (NASDAQ:NBIX) director George J. Morrow has sold a total of 40,000 shares of the company's common stock, garnering over $5.58 million. The transactions, which took place on March 14, 2024, involved shares sold at weighted average prices ranging from $137.83 to $142.32.
According to the SEC filing, Morrow executed two separate sales of 20,000 shares each. The first sale was at an average price of $139.4216, while the second sale averaged $139.4139 per share. Before the sales, Morrow also acquired 40,000 shares at a price of $39.79 per share through option exercises. These transactions resulted in a total acquisition value of approximately $1.59 million.
The sales were conducted under a Rule 10b5-1 trading plan, which was adopted on December 14, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling securities to avoid accusations of insider trading. The filing noted that Neurocrine Biosciences' policy prevents any amendments or modifications to the trading plan once it is established.
Investors monitoring insider activity may view these transactions as Morrow capitalizing on the recent performance of Neurocrine Biosciences stock. The total shares owned by Morrow following these transactions were not disclosed in the filing. However, the execution of these trades under a prearranged trading plan suggests that they were not based on any undisclosed material information about the company.
Neurocrine Biosciences, headquartered in San Diego, California, operates in the biopharmaceutical sector, focusing on treatments for neurological and endocrine-related diseases and disorders.
InvestingPro Insights
In light of the recent insider selling at Neurocrine Biosciences Inc. (NASDAQ:NBIX), it's valuable to consider the company's financial health and market performance to gain a broader perspective. InvestingPro data shows that Neurocrine Biosciences has a robust market capitalization of $13.84 billion, reflecting investor confidence and the scale of the company within the biopharmaceutical industry.
The company's P/E ratio stands at 54.82, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 40.6. This indicates that while the stock may not be the cheapest based on last year's earnings, it is trading at a lower P/E ratio relative to near-term earnings growth, which could suggest potential for future appreciation. An InvestingPro Tip points out that Neurocrine Biosciences is trading at a low P/E ratio in relation to its near-term earnings growth, which might attract investors looking for growth at a reasonable price.
Additionally, the company has experienced significant revenue growth, with a 26.76% increase in the last twelve months as of Q4 2023, demonstrating its ability to expand its financial base. The stock has also been performing well in the market, showing a strong return over the last three months, with a 15.75% price total return. This aligns with another InvestingPro Tip that highlights the company's strong return over the last three months, which may have contributed to Morrow's decision to sell shares at this time.
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