SAN DIEGO – Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) reported that its Chief Financial Officer, Marc Wilson, has sold shares in the company valued at nearly $300,000, according to a recent filing with the Securities and Exchange Commission.
The transaction, which took place on March 19, involved the sale of 6,942 shares at an average price of $42.91, amounting to a total of $297,881. The sales were made in a series of open market transactions ranging from $41.04 to $44.00 per share. This sale was conducted automatically under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
In addition to the sale, the filing also disclosed that on March 18, a total of 3,983 shares of common stock were withheld by Crinetics Pharmaceuticals to cover tax withholding obligations for Wilson related to the vesting of Restricted Stock Units. These shares were valued at $38.14 each, resulting in a total transaction value of $151,911. The disposition of these shares was also executed in accordance with a Rule 10b5-1 trading plan.
Following these transactions, Wilson still owns a total of 110,630 shares of Crinetics Pharmaceuticals, indicating continued investment in the company's future. Crinetics Pharmaceuticals, headquartered in San Diego, California, specializes in pharmaceutical preparations and has been a notable name in the biotechnology industry.
Investors and market watchers often look to insider selling and buying as a signal of confidence in the company's prospects. However, transactions under Rule 10b5-1 trading plans are scheduled in advance to avoid any potential conflict with insider trading regulations, and as such, may not always provide the same insight into an insider's view of the company's future performance.
Crinetics Pharmaceuticals has not issued any official statement regarding the transactions at the time of this report.
InvestingPro Insights
As Crinetics Pharmaceuticals (NASDAQ:CRNX) navigates the market, recent activity from its CFO has caught the attention of investors. In light of these developments, a closer look at the company's financial health and performance metrics is warranted. According to InvestingPro data, Crinetics Pharmaceuticals holds a market capitalization of approximately $3.55 billion USD. Despite a challenging period, the company has demonstrated a significant return over the last year, with a 169.97% increase in the price total return. This bullish trend is also reflected in the shorter term, with a 12.32% return over the last week, and a 21.57% return over the last month.
An InvestingPro Tip highlights that Crinetics Pharmaceuticals possesses a strong liquidity position, with cash reserves exceeding its debt, which could provide a buffer against market volatility and fund ongoing operations. Furthermore, five analysts have revised their earnings estimates upwards for the upcoming period, suggesting potential for future growth. However, it should be noted that the company is not expected to be profitable this year, and it trades at a high revenue valuation multiple of 6.58 as per the last twelve months ending Q4 2023.
For investors seeking a deeper dive into Crinetics Pharmaceuticals' prospects, InvestingPro offers additional insights. There are 14 InvestingPro Tips available for CRNX, providing a comprehensive analysis of the company's performance and outlook. Interested readers can find more information by visiting https://www.investing.com/pro/CRNX. To enhance your experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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