Axsome Therapeutics COO sells over $1.9m in company stock

Axsome Therapeutics, Inc. (NASDAQ:) has reported a significant transaction by its Chief Operating Officer, Mark L. Jacobson, according to a recent SEC filing. Jacobson sold 24,662 shares of the company’s common stock at prices ranging from $77.242, totaling over $1.9 million.

The transaction occurred on April 1, 2024, and was executed under a pre-approved 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for buying or selling stocks at a time when they are not in possession of material non-public information. This plan is intended to prevent any accusations of insider trading.

Before the sale, Jacobson exercised options to buy the same number of shares at a price of $1.3 per share, amounting to a total of $32,060. These options were exercised just before their 10-year expiration date, as noted in the footnotes of the SEC filing.

Following these transactions, Jacobson no longer holds any shares of Axsome Therapeutics’ common stock directly. The exercise and subsequent sale of stock options suggest a strategic financial move by the COO, taking advantage of the options before they expired and selling the shares at a higher market price.

Axsome Therapeutics, based in New York, is a biopharmaceutical company focused on developing novel therapies for central nervous system disorders. The sale by a top executive might catch the eye of investors and analysts who track insider transactions as a signal of the executives’ confidence in the company’s future prospects.

InvestingPro Insights

As Axsome Therapeutics (NASDAQ:AXSM) navigates through the biopharmaceutical landscape, recent financial metrics from InvestingPro provide a snapshot of the company’s performance and market position. With a market capitalization of $3.65 billion, Axsome’s financial health and growth prospects are of keen interest to investors.

An impressive gross profit margin of 90.37% over the last twelve months as of Q4 2023 demonstrates Axsome’s ability to maintain profitability at the operational level, despite a negative operating income margin of -67.59%. This suggests that while the company is generating a strong gross profit from its revenues of $270.6 million, it is also incurring significant operating expenses.

Investors should note that Axsome’s P/E ratio stands at -14.68, reflecting market expectations of future earnings growth despite the company not being profitable over the last twelve months. This is further emphasized by a high Price / Book multiple of 19.1, indicating that investors are willing to pay a premium for the company’s assets relative to the book value.

According to InvestingPro Tips, analysts do not anticipate the company will be profitable this year, which aligns with the current negative earnings per share (EPS) figures. However, with liquid assets exceeding short-term obligations, Axsome appears to have the liquidity to meet its immediate financial obligations. The company operates with a moderate level of debt, which could be a strategic leverage point or a concern depending on future revenue growth and profitability.

For those considering an investment in Axsome or looking for more detailed analysis, InvestingPro offers additional insights. With a total of 9 InvestingPro Tips available for Axsome, investors can gain a deeper understanding of the company’s financial health and market potential. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

Lastly, it’s noteworthy that Axsome does not pay a dividend to shareholders, which is common for growth-focused biotech companies that reinvest earnings back into research and development. This aspect, combined with the strong return over the last five years, may appeal to growth-oriented investors.

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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