Cerus Corp (NASDAQ:CERS) Chief Legal Officer Chrystal Jensen has recently sold a total of 35,284 shares of the company's common stock, according to a Form 4 filed with the Securities and Exchange Commission. The transactions, which took place on March 13 and March 14, resulted in proceeds exceeding $71,000.
On March 13, Jensen sold 17,460 shares at a weighted average price of $2.057, with individual transactions ranging from $2.025 to $2.10 per share. The following day, an additional 17,824 shares were sold at a weighted average price of $1.9744, with sales prices varying from $1.935 to $2.04 per share. The total value of shares sold across both days amounted to approximately $71,106.
These sales were executed pursuant to a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for trading stock at a time when they are not in possession of material non-public information. The plan was established to cover statutory tax withholding obligations and related brokerage fees associated with the vesting of restricted stock units.
Notably, on March 12, the executive also acquired 16,666 shares of common stock, which was related to the vesting of restricted stock units. However, no monetary transaction was reported for these acquisitions as they were part of a prearranged employee compensation plan.
Following these transactions, Jensen's direct ownership in Cerus Corp's common stock stands at 490,912 shares, as indicated in the filing. The recent sales by the Chief Legal Officer provide investors with insight into insider trading activity at Cerus Corp.
Investors often monitor insider buying and selling as it can provide valuable signals about the company's prospects and management's view of the stock's valuation. However, it's important to consider that insider transactions may not always be indicative of future performance and can be influenced by a variety of factors.
InvestingPro Insights
Amid recent insider trading activity at Cerus Corp (NASDAQ:CERS), where Chief Legal Officer Chrystal Jensen sold shares, investors are keeping a keen eye on the company's stock performance. The market has reflected some challenges for Cerus, with the stock experiencing a significant downturn over the past week, registering a -12.39% return. This trend extends over the last month with a -17.15% return, signaling some investor caution towards the stock.
InvestingPro data shows a current market capitalization of $358.94 million for Cerus Corp, and a Price / Book ratio for the last twelve months as of Q4 2023 standing at a high 6.82, which may suggest the stock is trading at a premium relative to its book value. Additionally, the company's revenue for the same period was $156.37 million, with a gross profit margin of 55.25%, indicating a strong ability to retain earnings from sales.
Two notable InvestingPro Tips for Cerus include the analysts' outlook that the company may not reach profitability this year, and the fact that Cerus operates with a moderate level of debt. These tips, among others available on InvestingPro, could provide valuable context for investors considering the implications of insider selling. For those looking for more in-depth analysis and additional InvestingPro Tips for Cerus Corp, visiting https://www.investing.com/pro/CERS is recommended. Currently, there are 8 additional tips listed in InvestingPro that could offer further insights.
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