Cerus (NASDAQ:CERS) Corporation (NASDAQ:CERS) President and CEO William Mariner Greenman has recently sold a significant portion of his holdings in the company, according to a new SEC filing. The transactions, which took place over two days, saw Greenman selling a total of 125,926 shares of Cerus Corp common stock for a combined value exceeding $256,000.
The sales occurred on March 13 and March 14, with the prices of the shares ranging from $2.0153 to $2.057. On the first day, Greenman disposed of 62,315 shares at an average weighted price of $2.057, with individual sales prices varying between $2.025 and $2.10. The following day, an additional 63,611 shares were sold at an average price of $2.0153, with prices ranging from $1.935 to $2.04 per share.
These stock sales were executed under a pre-arranged 10b5-1 trading plan, which is typically set up to allow insiders to sell shares at predetermined times and prices, thus avoiding potential accusations of insider trading. The plan was designed to cover statutory tax withholding obligations related to the vesting of certain restricted stock units, as indicated in the footnotes of the SEC filing.
Following these transactions, Greenman's direct ownership in Cerus Corp has decreased, yet he still holds a substantial number of shares in the company, amounting to 3,181,281 shares of common stock.
Investors often monitor insider selling for hints about executives' confidence in their company's prospects. However, sales like these, which are arranged in advance to cover tax obligations, are generally not seen as indicative of an insider's belief about future stock performance.
Cerus Corp, headquartered in Concord, California, specializes in the development and commercialization of innovative products in the field of blood transfusion safety.
InvestingPro Insights
Cerus Corporation's recent stock activity has caught the attention of investors, especially following significant insider transactions. In light of these events, let's dive into some key metrics and insights from InvestingPro that may help investors gain a clearer picture of the company's financial standing.
InvestingPro Data reveals a Market Cap of $358.94M USD, indicating the size and scale of Cerus Corporation within its industry. The P/E Ratio stands at -9.40, with an adjusted figure for the last twelve months as of Q4 2023 at -10.2. This suggests that the company is not currently profitable, a sentiment echoed by one of the InvestingPro Tips which indicates that analysts do not anticipate Cerus will be profitable this year.
Furthermore, the company's Price / Book ratio for the same period is 6.82, which is considered high, suggesting that the market values the company's assets quite optimistically relative to its book value. This is in line with another InvestingPro Tip that notes the stock is trading at a high Price / Book multiple.
Investors should also note that while the stock has seen a decline of 12.39% in the past week and 17.15% over the last month, Cerus Corporation's liquid assets exceed its short-term obligations, providing some financial stability. This is an important consideration given the insider selling activity and may offer some reassurance regarding the company's ability to meet its immediate financial commitments.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Cerus Corporation's financial health and stock performance. Remember, you can access these tips at https://www.investing.com/pro/CERS and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 8 InvestingPro Tips available, investors have a wealth of information at their fingertips to help inform their investment decisions.
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