Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) has reported a recent transaction by CEO Stephen Davis, who sold a significant amount of company stock, according to the latest SEC filings. On April 8, 2024, Davis sold a total of 26,574 shares of common stock at a weighted average price of $17.87 per share, resulting in a total sale value of approximately $474,877.
These sales were conducted in multiple transactions with prices ranging from $17.77 to $17.87. The transactions were stated to be mandatory sales made to cover withholding taxes and tax-related items in connection with the vesting of restricted stock units. The sales are intended to comply with Rule 10b5-1(c)(1)(i)(B) under the Exchange Act.
Additionally, the CEO acquired shares through the exercise of restricted stock units. However, these transactions did not involve any monetary exchange, as they represent a contingent right to receive shares of the issuer's common stock.
Investors and followers of Acadia Pharmaceuticals may be interested in these transactions as they reflect the CEO's trading activities in the company's stock. The total number of shares owned by Davis following these transactions has changed, but specifics on his remaining stake were not disclosed in the filing.
For those looking to follow up on the detailed numbers of shares sold at each separate price, the reporting person has committed to providing full information upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
Acadia Pharmaceuticals Inc., based in San Diego, California, is a biopharmaceutical company specializing in the development and commercialization of medicines to address unmet medical needs in central nervous system disorders.
InvestingPro Insights
Amidst the news of CEO Stephen Davis's stock transactions, Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) presents a mixed financial canvas. According to InvestingPro data, the company's market capitalization stands at $2.99 billion, with a challenging P/E ratio of -48.37, reflecting investor speculation about future earnings. The adjusted P/E ratio for the last twelve months as of Q4 2023 slightly improves to -46.4. Despite this, Acadia has shown robust revenue growth of 40.45% over the same period, highlighting the potential for future profitability.
From an operational standpoint, the company's gross profit margin was solid at 45.86%, though it faced an operating loss, with an operating income margin of -10.1%. This suggests that while Acadia is generating a healthy gross profit from its revenues, it's currently spending more than it earns to operate its business.
Investors considering Acadia's stock should note a couple of key InvestingPro Tips. First, the company holds more cash than debt on its balance sheet, which could provide financial flexibility in pursuing its growth strategies or weathering economic downturns. Additionally, Acadia is trading near its 52-week low, which could indicate a potential entry point for investors if they believe in the company's long-term prospects.
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