EVP Of ACADIA Pharmaceuticals Sold $145K In Stock

Brendan Teehan, EVP at ACADIA Pharmaceuticals ACAD, disclosed an insider sell on August 20, according to a recent SEC filing.

What Happened: Teehan's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 9,534 shares of ACADIA Pharmaceuticals. The total transaction value is $145,679.

The latest update on Wednesday morning shows ACADIA Pharmaceuticals shares up by 0.39%, trading at $15.63.

About ACADIA Pharmaceuticals

Acadia Pharmaceuticals Inc is a biotechnology company that develops and commercializes biopharmaceutical products to address central nervous system disorders. The company aims to discover small molecules drugs that address disorders such as Parkinson's, Alzheimer's, and schizophrenia. Acadia also seeks to in-license or acquire complementary products and candidates. The company's patent applications claim proprietary technology, including novel methods of screening and chemical synthetic methods, novel drug targets, and novel compounds identified using its technology.

ACADIA Pharmaceuticals's Economic Impact: An Analysis

Revenue Growth: ACADIA Pharmaceuticals's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 46.44%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 92.47%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): ACADIA Pharmaceuticals's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.2.

Debt Management: ACADIA Pharmaceuticals's debt-to-equity ratio is below the industry average at 0.11, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 81.95 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.89, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 62.42, ACADIA Pharmaceuticals presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of ACADIA Pharmaceuticals's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.