Gritstone bio, Inc. (NASDAQ:GRTS) has reported that its EVP, Chief Business Officer, Matthew Hawryluk, sold 9,259 shares of the company's common stock. The transaction, dated May 16, 2024, was disclosed in a recent SEC filing. The shares were sold at a weighted average price ranging from $0.735 to $0.7616, with the total sale amounting to approximately $6,928.
The sale was conducted to cover tax liabilities associated with the settlement of Performance Stock Units (PSUs). The PSUs, which were granted on March 22, 2024, vested partly due to the achievement of certain performance criteria certified by Gritstone bio's Board of Directors. Half of the PSUs vested immediately on May 15, 2024, with the remaining half set to vest on May 15, 2025, contingent on Hawryluk's continued service with the company.
In addition to the sale, Hawryluk also received 19,149 PSUs on May 15, 2024, which increased his total direct ownership in the company to 323,190 shares, including vested and unvested RSUs and PSUs. These PSUs are part of a compensation arrangement that provides a contingent right to receive shares of Gritstone bio's common stock upon vesting.
Furthermore, Hawryluk was awarded a stock option to buy 180,000 shares at a conversion or exercise price of $0.75, vesting in two equal installments on September 30, 2024, and September 30, 2025, again subject to his continuing service.
Investors and followers of Gritstone bio, Inc. may find these transactions of interest as they reflect the activities of the company's executives and may provide insight into their perspective on the company's stock value and performance.
InvestingPro Insights
As investors digest the recent insider transactions at Gritstone bio, Inc. (NASDAQ:GRTS), it's important to consider the company's financial health and market performance for a comprehensive view. Gritstone bio's market capitalization currently stands at $85.44 million, reflecting its position within the biotechnology sector. According to InvestingPro data, the company's Price/Book ratio for the last twelve months as of Q1 2024 is 6.12, which is typically considered high, indicating that the market values the company's assets quite generously relative to its book value.
Despite the optimism that may be inferred from insider transactions, GRTS has been facing financial challenges. The company's gross profit margin for the same period was deeply negative at -729.18%, a figure that underscores the cost pressures and revenue challenges the company is facing. This is also reflected in the company's operating income margin, which stands at -924.41%. These metrics suggest that the company is not currently generating a profit from its operations, which aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
For those closely monitoring GRTS stock, it's worth noting that the company's shares have experienced significant price volatility, a characteristic that is substantiated by the -63.55% three-month price total return. This level of volatility can present both risks and opportunities for traders and investors. Moreover, the company's stock price has shown a decline, trading at 23.63% of its 52-week high. This could be an indicator of market sentiment and the stock's performance over the past year.
InvestingPro users looking for deeper insights will find a total of 10 additional InvestingPro Tips for GRTS, which can provide further guidance on the company's financials and stock performance. For those interested in accessing these valuable insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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