In a recent transaction, George Jay Goldsmith, a significant shareholder of COMPASS Pathways plc (NASDAQ:CMPS), sold a total of 51,500 ordinary shares of the company. The sales, which took place on March 28, 2024, amounted to over $445,000, with the shares sold at an average price of $8.6515 each. The transactions occurred in a price range of $8.31 to $9.21 per share.
COMPASS Pathways plc, known for its role in the pharmaceutical preparations industry, has seen its shares represented by American Depositary Shares, with each currently corresponding to one ordinary share. The reported sales were automatically executed under a pre-arranged trading plan, known as Rule 10b5-1, which was adopted by Mr. Goldsmith on August 23, 2023.
Following the sale, Mr. Goldsmith's directly owned stake in the company has decreased to 4,036,154 ordinary shares. Additionally, a similar number of shares were sold indirectly by Dr. Ekaterina Malievskaia, Mr. Goldsmith's spouse, bringing her holdings to 4,033,880 shares after the transaction. It is important to note that although Mr. Goldsmith and Dr. Malievskaia are married, they have expressly disclaimed beneficial ownership of each other's shares in COMPASS Pathways.
The sales are part of a systematic trading plan, which allows insiders to sell shares at predetermined times to avoid accusations of insider trading. This plan provides a legal framework for company insiders to sell their stock in a controlled manner.
This recent transaction provides investors with updated information on the share ownership distribution among COMPASS Pathways plc's significant shareholders. Investors and market watchers often pay close attention to insider transactions as they may provide insights into the company's financial health and future prospects.
InvestingPro Insights
COMPASS Pathways plc (NASDAQ:CMPS) has recently been the subject of investor attention due to significant insider transactions. As stakeholders analyze the implications of these sales, it is essential to consider the company's financial health and market performance. Based on real-time data from InvestingPro, COMPASS Pathways currently holds a market capitalization of $661.56 million. Despite the recent insider sales, the company's financials reveal a challenging landscape with a negative P/E ratio of -4.8 for the last twelve months as of Q1 2023, indicating that the company is not currently profitable.
InvestingPro Tips suggest that COMPASS Pathways holds more cash than debt on its balance sheet, which is a positive sign of financial stability. However, the company is quickly burning through cash, which could raise concerns about its long-term financial sustainability. Additionally, the stock has experienced significant volatility, with a price total return of -27.53% over the past month, reflecting the market's reaction to its financial performance and insider trading activities.
For investors looking for a more in-depth analysis of COMPASS Pathways, there are 9 additional InvestingPro Tips available. These tips can provide further insights into the company's financial metrics and stock performance. Interested readers can find these tips at https://www.investing.com/pro/CMPS and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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