In a recent move, Roger Jeffs, a director at Axsome Therapeutics, Inc. (NASDAQ:AXSM), sold a significant number of shares in the company. The transactions, which took place on March 14 and 15, involved the sale of common stock totaling over $2.2 million.
Jeffs completed two separate sales on March 14, each involving 13,000 and 16,976 shares, with prices per share of $69.702. On the following day, he sold an additional 2,347 shares at a price of $71.6072 per share. The combined sales over the two days resulted in a total transaction value of $2,257,449.
Prior to these sales, Jeffs exercised options to acquire shares at prices ranging from $22.03 to $29.91, for a total transaction value of $789,986. These exercises represent the acquisition of shares at predetermined prices and are a common practice among company insiders.
It's worth noting that these transactions were carried out in accordance with a pre-approved trading plan under Rule 10b5-1, which allows insiders to establish predetermined trading plans for buying or selling stocks at a time when they are not in possession of material non-public information.
The sales have adjusted Jeffs' direct holdings in Axsome Therapeutics, but he continues to have indirect ownership of additional shares in the company. The indirect holdings are not part of the reported sale transactions and are held separately.
Investors often monitor insider trading activities, such as purchases and sales of company stock by directors and executives, for insights into the company's performance and management's view of the company's value. However, these transactions can be motivated by a variety of personal financial considerations and do not always indicate a change in company fundamentals.
Axsome Therapeutics, based in New York, is a biopharmaceutical company focused on developing novel therapies for central nervous system disorders.
InvestingPro Insights
Following the recent insider trading activity at Axsome Therapeutics, Inc. (NASDAQ:AXSM), investors are keen to understand the underlying financial metrics that may influence the company's stock performance. Based on real-time data from InvestingPro, the company currently holds a market capitalization of $3.58 billion USD. Despite the impressive gross profit margins of 90.37% over the last twelve months as of Q4 2023, Axsome Therapeutics is not expected to be profitable this year, as indicated by the negative P/E ratios of -14.07 and an adjusted -18.15 for the same period.
The company's revenue has seen a significant uptick, with a growth of 440.8% over the last twelve months as of Q4 2023. However, it's important to note that the company operates with a moderate level of debt and has been flagged by analysts for downward earnings revisions for the upcoming period. This could be a point of consideration for investors evaluating the stock's future trajectory. Additionally, Axsome's stock has experienced a decline over the last month, with a -18.61% return, which may reflect market sentiment.
InvestingPro Tips suggest that while Axsome has demonstrated a strong return over the last five years, the company does not pay a dividend to shareholders. This could influence investment decisions for those seeking regular income from their investments. For investors seeking more comprehensive analysis, there are 11 additional InvestingPro Tips available for Axsome Therapeutics, which can be accessed through the InvestingPro platform. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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