Ekaterina Malievskaia, a significant shareholder of COMPASS Pathways plc (NASDAQ:CMPS), has recently sold a notable amount of shares in the company. The transactions, which occurred on May 2nd and May 3rd, totaled over $490,000. This move by Malievskaia has caught the attention of investors tracking insider activity within the pharmaceutical industry.
The shares were sold at prices ranging from $8.23 to $9.32, representing a weighted average price between $8.2902 and $8.8187. On May 2nd, Malievskaia sold 9,622 shares at an average price of $8.2902 and another set of 9,621 shares were sold indirectly by her spouse at the same average price. The following day, she continued by selling 18,761 shares at an average price of $8.8187, and her spouse sold an equivalent number of shares at the same average price.
Post-transaction, Malievskaia's direct holdings in COMPASS Pathways stand at 3,945,017 shares, with an additional 3,947,290 shares held indirectly by her spouse. Notably, these sales were executed automatically in accordance with a pre-established Rule 10b5-1 trading plan, which was adopted on August 23, 2023.
COMPASS Pathways plc, a company in the pharmaceutical preparations industry, has been a subject of investor interest due to its focus on mental health care, particularly its research into psilocybin therapy for treatment-resistant depression.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance. In the case of COMPASS Pathways, the recent sales by Malievskaia and her spouse represent a significant change in their investment position, which may be worth noting for those closely following the company's stock.
InvestingPro Insights
As COMPASS Pathways plc (NASDAQ:CMPS) catches the eye of investors following the notable insider sales by Ekaterina Malievskaia, a deeper look into the company's financial health and stock performance through InvestingPro provides a more comprehensive picture. With a market capitalization of approximately $588.43 million and an adjusted P/E ratio reflecting a value of -4.97 for the last twelve months as of Q4 2023, CMPS's financial landscape is essential for investors to consider.
The company's stock has experienced significant volatility, with a large price uptick of 39.1% over the last six months, yet a 1-month price total return of -9.37% as of the date provided. This volatility is also reflected in the company's stock price, which currently stands at 67.53% of its 52-week high. These metrics underscore the importance of staying informed on the company's performance and market movements.
InvestingPro Tips reveal that COMPASS Pathways holds more cash than debt on its balance sheet, yet it is quickly burning through cash and has weak gross profit margins. Moreover, analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. On a positive note, the company's liquid assets exceed its short-term obligations, providing some financial stability.
For investors seeking additional insights, InvestingPro offers more tips on COMPASS Pathways, which can be accessed at https://www.investing.com/pro/CMPS. These tips could further inform investment decisions, especially in light of the recent insider activity. As a special offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a total of 9 InvestingPro Tips for COMPASS Pathways.
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