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Compass Pathways exec sells over $246k in company stock

Published 05/22/2024, 04:24 PM

COMPASS Pathways plc (NASDAQ:CMPS), a pharmaceutical company specializing in the development of psychiatric treatments, has reported a significant transaction involving a key stakeholder. Ekaterina Malievskaia, associated with the company as a ten percent owner, has sold a total of $246,566 worth of ordinary shares. The transactions were executed over two consecutive days, with shares sold at prices ranging from $7.892 to $7.9078.

The sales took place on May 20 and May 21, 2024, with 13,407 shares sold at an average price of $7.892 on the first day. On the following day, another 17,800 shares were sold, this time at a slightly higher average price of $7.9078. These sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading.

The transactions were carried out through both direct and indirect ownership, with some shares being registered under Malievskaia's spouse, George Jay Goldsmith. However, both parties have expressly disclaimed beneficial ownership of each other's shares in the company.

Investors monitoring insider activity may note that these sales represent a change in the stakeholder's holdings, but the reasons behind the sales are not disclosed. The transactions could be part of a diversification strategy or other personal financial planning.

COMPASS Pathways continues to be a notable player in the pharmaceutical industry, with a focus on mental health treatments. Investors and analysts often scrutinize insider transactions for hints about a company's financial health and future prospects, although such sales do not necessarily reflect a negative outlook.

The company and the involved parties have not made any additional comments regarding the transactions at this time.

InvestingPro Insights

Amid the recent insider transactions at COMPASS Pathways plc (NASDAQ:CMPS), current and potential investors may be seeking additional context to understand the company's financial health and future prospects. According to InvestingPro data, COMPASS Pathways holds a market capitalization of approximately $529.65 million, with a notable price uptick of 30.08% over the last six months, reflecting a significant change in investor sentiment. Despite this increase, the year-to-date price total return indicates a decrease of 10.06%, illustrating the stock's volatility in the short term.

An InvestingPro Tip highlights that COMPASS Pathways is not expected to be profitable this year, as analysts do not anticipate positive earnings. This aligns with the company's reported negative operating income of -$132.04 million and a concerning return on assets of -53.68% for the last twelve months as of Q1 2024. Additionally, the company's P/E ratio stands at -3.37, with an adjusted P/E ratio for the same period at -4.09, further underscoring the company's current lack of profitability.

Nevertheless, COMPASS Pathways does hold more cash than debt on its balance sheet, which is a positive sign for liquidity and financial stability. Moreover, liquid assets exceed short-term obligations, providing some reassurance to investors about the company's ability to meet its immediate financial commitments. However, it's important to note that the company is quickly burning through cash, and it suffers from weak gross profit margins. These InvestingPro Tips suggest that while COMPASS Pathways has some financial strengths, it also faces significant challenges.

For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into COMPASS Pathways' financials and stock performance. For a limited time, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can access these valuable tips and more.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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