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Exact sciences exec acquires shares, sells for tax obligations

Published 05/03/2024, 07:08 AM
EXAS
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MADISON, WI – James Herriott, the Senior Vice President, General Counsel & Secretary of Exact Sciences Corp (NASDAQ:EXAS), engaged in notable stock transactions at the end of April, according to recent filings. The executive acquired shares through an employee stock plan and a performance award, and sold a portion to cover tax liabilities.

Herriott purchased a total of 771 shares of Exact Sciences stock. This included 708 shares acquired through the company's Employee Stock Purchase Plan at an average price of $30.02, amounting to $21,254. Additionally, he received 63 shares at no cost upon the settlement of a performance share unit award.

On the following day, Herriott sold 30 shares at a price of $60.15 each, totaling $1,804. The sale was executed under a pre-arranged 10b5-1 trading plan, a common mechanism for company insiders to sell shares in a manner that avoids concerns about insider trading. The transaction was intended to cover withholding taxes due upon the vesting of certain performance stock units.

After these transactions, Herriott's direct holdings in Exact Sciences amount to 9,866 shares, excluding additional vested and unvested options and restricted stock units he holds.

Investors often monitor insider transactions for insights into executive sentiment on the company's prospects. In the case of Exact Sciences, the recent filings show a balance of share acquisitions through compensation mechanisms and sales for tax purposes, providing a glimpse into the financial moves of one of its top executives.

InvestingPro Insights

As Exact Sciences Corp (NASDAQ:EXAS) continues to navigate the market, recent data and analysis from InvestingPro have highlighted some key financial metrics and sentiments that could be of interest to investors following the company's insider transactions. The market cap for Exact Sciences stands at a notable $11.13 billion USD, reflecting the company's substantial presence in the diagnostics and research industry.

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Despite the insider's confidence suggested by the recent stock purchases, InvestingPro Tips indicate that analysts are cautious about the company's immediate profitability. They have revised their earnings downwards for the upcoming period and do not anticipate the company will be profitable this year. This aligns with the company's current P/E ratio, which is negative at -53.75, suggesting that the market expects future earnings to improve from the last twelve months as of Q4 2023.

Moreover, the company's stock performance has been underwhelming over the last month, with a price total return of -17.89%. However, it's worth noting that Exact Sciences' liquid assets exceed its short-term obligations, which could provide some level of financial stability. Additionally, while the company has not been profitable over the last twelve months and does not pay a dividend, it has delivered a high return over the last decade, which may appeal to long-term investors.

For those interested in a deeper dive into the financial health and future prospects of Exact Sciences, InvestingPro offers additional insights. With a total of 7 InvestingPro Tips available, readers can gain a more comprehensive understanding of the company's position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/EXAS and explore these valuable tips to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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