In a recent transaction, George Jay Goldsmith, a significant shareholder of COMPASS Pathways plc (NASDAQ:CMPS), a company specializing in pharmaceutical preparations, has sold a substantial number of shares. According to the latest reports, Goldsmith sold shares in two separate batches over the course of two days.
On April 16, 2024, Goldsmith sold a total of 47,761 ordinary shares at an average price of $8.5289, within a price range of $8.17 to $8.83. The following day, on April 17, he disposed of an additional 21,700 shares at an average price of $8.7841, with individual sales prices ranging from $8.70 to $8.88. The combined sales from these transactions amounted to nearly $597,963.
The shares sold by Goldsmith were held both directly and indirectly, with some being owned by his spouse, Dr. Ekaterina Malievskaia. It is important to note that both Goldsmith and Malievskaia have disclaimed beneficial ownership of each other's shares in the issuer. The sales occurred automatically pursuant to a pre-arranged Rule 10b5-1 trading plan, which was adopted on August 23, 2023.
Following these transactions, the number of shares directly and indirectly owned by Goldsmith stands at 3,973,400. COMPASS Pathways, under the trading symbol CMPS, continues its operations in the pharmaceutical sector, with these transactions reflecting the latest changes in its insider ownership dynamics.
InvestingPro Insights
The recent insider transactions involving COMPASS Pathways plc (NASDAQ:CMPS) shed light on the company's financial health and market performance. Notably, COMPASS Pathways holds more cash than debt on its balance sheet, which is a positive sign for investors concerned about the company's solvency. Additionally, the company has sufficient liquid assets to cover short-term obligations, providing a cushion against financial uncertainties.
However, InvestingPro Tips suggest that COMPASS Pathways is quickly burning through cash and suffers from weak gross profit margins. This financial trajectory raises questions about the company's long-term sustainability, especially since analysts do not expect the company to be profitable this year. The stock price has also been quite volatile, with a significant uptick over the last six months, despite a negative return on assets in the last twelve months as of Q1 2023.
For those closely monitoring CMPS, the company's market capitalization stands at $575.44 million, and its Price to Earnings (P/E) ratio is currently negative at -3.60, reflecting the company's lack of profitability. Moreover, the Price to Book value as of Q1 2023 is 2.55, which might be of interest to value-oriented investors.
For further insights and tips on COMPASS Pathways, including the full list of 9 InvestingPro Tips, visit InvestingPro. Take advantage of the exclusive offer with coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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