In a recent transaction, Ekaterina Malievskaia, a significant shareholder of Compass Pathways plc (NASDAQ:CMPS), sold a total of 51,500 ordinary shares of the company. The sale was executed at an average price of $8.6515 per share, resulting in a total value of approximately $445,552.
The transactions occurred on March 28, 2024, and were carried out in multiple trades at prices ranging from $8.31 to $9.21. The sale was conducted automatically under a Rule 10b5-1 trading plan, which had been previously adopted on August 23, 2023.
Following these transactions, Malievskaia's direct holdings in Compass Pathways have decreased, yet she still retains a substantial number of shares. Notably, a portion of the shares sold were held indirectly by her spouse, George Jay Goldsmith, as indicated by the footnotes in the SEC filing. Both Malievskaia and Goldsmith have stated that they disclaim beneficial ownership of each other's shares in the issuer.
Investors often monitor insider transactions as they can provide insights into the perspectives of key stakeholders within the company. Such sales and purchases are regular occurrences in the market and are publicly disclosed to ensure transparency.
For Compass Pathways, which operates in the pharmaceutical preparations industry, these insider transactions are part of the continuous ebb and flow of stock ownership among its executives and significant shareholders. The company's shares are listed on NASDAQ under the ticker symbol CMPS, and investors can follow these and other transactions as part of their due diligence and investment decision-making process.
InvestingPro Insights
As investors digest the recent insider sale by Ekaterina Malievskaia at Compass Pathways plc (NASDAQ:CMPS), it is important to consider the company's financial health and market performance. According to InvestingPro data, Compass Pathways currently has a market capitalization of approximately $568.61 million. Despite market challenges, the company maintains a cash position that outweighs its debt, which is a positive sign for its financial stability. However, it's worth noting that Compass Pathways has not been profitable over the last twelve months, with a negative P/E ratio of -3.59, adjusted to -4.8 for the last twelve months as of Q4 2023.
The company's stock price has experienced significant volatility recently, with a one-week total return of -9.27% and a one-month total return of -27.53%. This may raise concerns among investors about the stock's short-term performance. On the other hand, the six-month total return shows a positive figure of 12.43%, which could indicate some recovery or resilience in the longer term.
InvestingPro Tips also highlight that Compass Pathways is quickly burning through cash and suffers from weak gross profit margins. Additionally, analysts do not anticipate the company will be profitable this year, which may be a consideration for those looking at the long-term potential of their investments. For investors seeking a deeper analysis, there are 9 additional InvestingPro Tips available, which can be explored by visiting InvestingPro's comprehensive analysis on Compass Pathways. To gain access to these insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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