IGM Biosciences CEO sells shares worth more than $45,000 Via Investing.com
IGM Biosciences, Inc. (NASDAQ:) CEO and President Fred Schwarzer has sold half of his company's shares, as reported in a recent filing with the Securities and Exchange Commission. The transaction, which occurred on September 13, 2024, involved the sale of 3,946 shares of common stock at an average price of $11.5388, amounting to approximately $45,532.
Sales were made in multiple exchanges at prices ranging from $11.20 to $11.795 per share. The sale is intended to cover withholding tax obligations arising from the issuance of restricted stock units, a common practice among executives receiving equity-based compensation.
Following this transaction, Schwarzer's direct holdings in IGM Biosciences decreased, but he still holds a majority stake in the company. According to the filing, the CEO directly owns 250,124 shares after the sale. Additionally, the filing disclosed that Schwarzer has indirect ownership of 196,718 shares held by the Schwarzer Family Trust.
Investors often monitor insider trading as they provide insight into management's views on the company's current valuation and future prospects. Schwarzer's sale may draw the attention of the investment community as it examines the potential impact on IGM Biosciences' stock performance.
IGM Biosciences, headquartered in Mountain View, California, is a biotechnology company specializing in pharmaceutical preparations. The company's shares are publicly traded on the NASDAQ exchange, where investors can follow the stock's performance under the ticker symbol IGMS.
In other recent news, IGM Biosciences reported its second quarter financial results, which revealed a net loss of $0.79 per share, a sharp contrast to the first quarter's estimated earnings of $0.21 per share. This was mainly due to lower than expected corporate income. The company's research and development expenses for the quarter reached $42.0 million, selling, general and administrative expenses reached $10.6 million.
As a result, HC Wainwright has adjusted its full-year 2024 estimate of net loss for IGM Biosciences to $2.31 per share, a significant improvement from the previously assumed net loss of $3.27 per share. The company ended the second quarter with approximately $256.4 million in revenue.
In other recent developments, IGM Biosciences has made significant progress in its original pipeline. Morgan Stanley maintained an overweight rating on the company, highlighting the ongoing Phase 1b study of imvotamab for rheumatoid arthritis and systemic lupus erythematosus, and the completion of registration of aplitabart in a Phase 1a/1b study for colon cancer.
RBC Capital revised its outlook on IGM Biosciences, lowering the price target but maintaining an Outperform rating. Finally, IGM Biosciences has developed its collaboration with it Sanofi (NASDAQ:), now focuses exclusively on immunology and inflammation targets.
InvestingPro Insights
IGM Biosciences, Inc. (NASDAQ:IGMS) has recently seen significant movement in its stock price, with a remarkable return over the past week of 50.6%, and an impressive year-to-date return of 112.76%. This level of performance is often a signal to investors to pay more attention to a company's stock, and in the case of IGM Biosciences, there are several key metrics and InvestingPro tips that can provide more context to these figures.
One of InvestingPro's tips shows that IGM Biosciences holds more cash than debt on its balance sheet, which can be a good sign of financial stability for potential investors. This is especially important considering the recent sale of the company's CEO Fred Schwarzer to pay off tax obligations. Additionally, the company's liquid assets exceed its current liabilities, which is another indicator of a strong financial position.
Despite these positive indicators, IGM Biosciences also faces challenges. The company has not been profitable for the past twelve months, and analysts do not expect it to be profitable this year. In addition, the company is quickly burning through cash, a concern that should be weighed against its strong cash position.
From InvestingPro Data, IGM Biosciences' market capitalization stands at $1.05 billion, and the company trades at a high Price/Book multiple of 8.57. Although revenue has grown by 74% over the past twelve months, the company suffers from weak gross margin, which is reflected in the gross margin of -6530.02%. These metrics can be important to investors trying to assess a company's growth potential and valuation.
For investors seeking in-depth analysis, there are additional InvestingPro Tips available on the InvestingPro platform that may further guide investment decisions regarding IGM Biosciences. Currently, there are 16 other tips listed to provide a comprehensive view of the company's financial health and stock performance.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
