On October 6, 2023, Austin Kim, the Executive Vice President, General Counsel, and Secretary of ACADIA Pharmaceuticals Inc (ACAD, Financial), sold 16,369 shares of the company. This move is part of a series of insider transactions that have been occurring over the past year at ACADIA Pharmaceuticals Inc.
ACADIA Pharmaceuticals Inc is a biopharmaceutical company that focuses on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. The company's lead drug candidate, pimavanserin, is used for the treatment of Parkinson's disease psychosis and has potential utility in several other neurological and psychiatric disorders.
Over the past year, the insider has sold a total of 20,134 shares and has not made any purchases. This recent sale represents a significant portion of the insider's transactions over the past year.
The insider transaction history for ACADIA Pharmaceuticals Inc shows a trend of more sells than buys. Over the past year, there has been only 1 insider buy compared to 33 insider sells. This could indicate that insiders believe the stock is currently overvalued, leading them to sell their shares.
On the day of the insider's recent sale, shares of ACADIA Pharmaceuticals Inc were trading for $21.96 apiece, giving the stock a market cap of $3.55 billion.
Despite the insider's sell, the stock appears to be modestly undervalued based on its GuruFocus Value of $27.96, with a price-to-GF-Value ratio of 0.79. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
While the insider's sell might raise some eyebrows, it's important to remember that insider transactions are just one piece of the puzzle when evaluating a stock. Investors should also consider other factors such as the company's financial health, its growth prospects, and the overall market conditions before making an investment decision.
As always, it's recommended to conduct your own thorough research and consider consulting with a financial advisor before making any investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
