Brendan Teehan, the Executive Vice President, Chief Operating Officer, and Head of Commercial at Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), recently sold shares of the company's stock. On March 27, 2024, Teehan sold 5,140 shares at an average price of $17.90, totaling approximately $92,005.
This sale was made to cover withholding taxes and tax-related items associated with the vesting of performance stock units, as per the footnotes in the SEC filing. The transaction is also intended to comply with Rule 10b5-1(c)(1)(i)(B) under the Exchange Act.
In addition to the sale, Teehan acquired 10,048 shares of Acadia Pharmaceuticals common stock on March 25, 2024, at no cost upon the vesting of performance stock units granted on April 5, 2022, at 50% of the target. Following these transactions, Teehan's direct ownership in the company stands at 36,340 shares of common stock.
Furthermore, Teehan was granted derivative securities in the form of stock options and restricted stock units. On the same date, he received 89,516 stock options with a conversion or exercise price of $17.84, vesting over a period starting from March 25, 2025. Additionally, 27,460 restricted stock units were granted, representing a contingent right to receive shares of Acadia Pharmaceuticals common stock, which will vest in four equal annual installments beginning March 25, 2025.
The executive's recent transactions provide insights into the stock-based compensation and tax obligations that high-level executives at public companies often manage. For investors, these filings offer a glimpse into the actions of Acadia Pharmaceuticals' insiders, which can be a valuable piece of information when assessing the company's stock performance and management's stake in the business.
InvestingPro Insights
Amidst the recent insider transactions at Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), the company's financial health and stock performance metrics offer additional context for investors. According to InvestingPro data, Acadia has a market capitalization of approximately $3 billion. Despite the recent sale by Executive VP Brendan Teehan, the company's revenue has shown robust growth, with a 40.45% increase over the last twelve months as of Q4 2023, and an even more impressive quarterly revenue growth of 69.27% in Q4 2023.
However, Acadia's profitability remains a concern, with a negative P/E ratio of -46.53 for the same period, reflecting challenges in generating net income relative to shareholder equity. The company's stock has experienced a significant decline over the past three months, with a 42.01% drop in price total return, trading near its 52-week low, which could signal a potential buying opportunity according to one InvestingPro Tip, as the stock's RSI suggests it is in oversold territory.
For investors seeking a deeper dive into Acadia's financials and stock performance, there are additional InvestingPro Tips available, including insights on the company's cash position, net income growth expectations, and liquidity. With 11 more tips listed on InvestingPro, including the company's potential to turn profitable this year, investors can gain a more comprehensive understanding of Acadia Pharmaceuticals' prospects. To access these insights and more, visit https://www.investing.com/pro/ACAD and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.