Ekaterina Malievskaia, a significant shareholder at COMPASS Pathways plc (NASDAQ:CMPS), has recently sold a total of 51,500 ordinary shares of the company, resulting in proceeds of over $445,000. The transactions took place on March 28, with the shares being sold at a weighted average price of $8.6515 each. The sales occurred through a series of multiple transactions at prices ranging from $8.31 to $9.21.
COMPASS Pathways, known for its focus on pharmaceutical preparations, has seen these transactions automatically executed under a pre-established trading plan. According to the footnotes in the SEC filing, these sales were conducted in accordance with a Rule 10b5-1 trading plan, which had been adopted by Malievskaia on August 23, 2023.
Following the sale, Malievskaia's direct holdings in the company amounted to 4,033,880 ordinary shares. Additionally, another set of transactions conducted by Malievskaia's spouse, George Jay Goldsmith, also under a Rule 10b5-1 trading plan, resulted in an indirect holding of 4,036,154 shares post-transaction. It is important to note that despite their marital status, Malievskaia and Goldsmith have expressly disclaimed beneficial ownership of each other's shares in COMPASS Pathways.
COMPASS Pathways has been at the forefront of developing innovative therapies in mental health care and has attracted significant investor interest. The recent stock sales by one of its key shareholders provide noteworthy insights into the trading activities of company insiders.
Investors keep a close eye on insider transactions as they often seek to understand the confidence levels of a company's executives and significant shareholders in the firm's future prospects. The details of these transactions, including the number of shares sold and the prices at which they were transacted, are available to the public and can be furnished upon request to relevant parties.
InvestingPro Insights
In light of the recent insider transactions at COMPASS Pathways plc (NASDAQ:CMPS), investors may find additional context in real-time data and InvestingPro Tips. Despite Ekaterina Malievskaia selling a significant number of shares, the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability. However, it is essential to note that COMPASS Pathways is quickly burning through cash, which could be a factor in the insider selling activity.
InvestingPro Data reveals that COMPASS Pathways has a market capitalization of approximately $661.56 million and a negative P/E ratio of -4.13, indicating that the company is not currently profitable. Over the last twelve months as of Q4 2023, the company has reported a substantial operating loss of $124.04 million. Additionally, the stock has experienced a significant price drop over the last week, with a -9.27% total return, and a more pronounced decline over the last month, at -27.53%.
For those looking to delve deeper into the financial health and future prospects of COMPASS Pathways, there are additional InvestingPro Tips available. For instance, the company's stock price movements are quite volatile, and analysts do not anticipate the company will be profitable this year. These insights, among others, can be further explored on InvestingPro, and users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips listed for COMPASS Pathways, which can provide a more comprehensive understanding of the company's current situation and future outlook.
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