Terns Pharmaceuticals, Inc. (NASDAQ:TERN) has reported that director Jill M. Quigley sold a significant number of shares in the company. Over the course of two days, Quigley sold a total of 15,000 shares at prices ranging from $7.35 to $7.815, resulting in a combined sale value of $113,579.
The transactions, as detailed in a recent SEC filing, show that on August 1, Quigley sold 6,143 shares at an average price of $7.6751 per share, totaling approximately $47,148. The following day, an additional 8,857 shares were sold at an average price of $7.5005 per share, adding up to around $66,431.
These sales were made as part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. A footnote in the filing indicates that the shares sold on August 1 were to satisfy tax obligations related to the vesting of a restricted stock unit award and were not considered a discretionary trade.
After these transactions, Quigley's remaining stake in Terns Pharmaceuticals consists of 15,000 shares, demonstrating a reduction in her investment in the company. The stock sales by a director often draw attention from investors who look for insights into insiders' perspectives on the company's future performance.
Investors and analysts typically monitor insider trades such as these to gain a better understanding of how those with the most knowledge about the company view its stock's value and prospects.
InvestingPro Insights
As investors digest the news of director Jill M. Quigley's recent stock sales in Terns Pharmaceuticals, Inc. (NASDAQ:TERN), it is worth considering the company's financial health and market performance. Terns Pharmaceuticals currently holds a market capitalization of $472.14 million, a figure that reflects the company's valuation in the market. Despite this valuation, the company's P/E ratio stands at -5.91, indicating that investors are facing losses per share, which aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the company's Price / Book ratio for the last twelve months as of Q1 2024 is at 2.0, suggesting that the stock is trading at twice the company's book value per share.
On a more positive note, Terns Pharmaceuticals has been experiencing a strong return over the last three months, with a price total return of 26.25%. This is complemented by a significant price uptick over the last six months, showing a total return of 35.87%. These metrics may be of interest to investors considering the recent insider trading activity and the potential future direction of the stock.
Additionally, the company's balance sheet reflects a strategic financial position, holding more cash than debt, which is a reassuring sign for investors concerned about the company's liquidity. This is supported by the InvestingPro Tip that the firm's liquid assets exceed short-term obligations, indicating a capacity to meet its short-term liabilities.
For those seeking a deeper analysis, InvestingPro offers a comprehensive set of additional tips (11 in total) that can provide further insight into Terns Pharmaceuticals' performance and outlook. These InvestingPro Tips can be accessed at InvestingPro's dedicated TERN page, offering valuable information for investors looking to make informed decisions.
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