Matthew K. Fust, a director at Neumora Therapeutics Inc. (NASDAQ:NMRA), executed significant stock transactions this week according to a recent SEC filing. On October 17 and 18, Fust sold a total of 21,788 shares of Neumora common stock, with the sales amounting to approximately $370,961. The shares were sold at a weighted average price range between $17.0103 and $17.0346 per share.
In addition to these sales, Fust exercised options to acquire a total of 21,788 shares of Neumora common stock over the same period. The options were exercised at prices ranging from $2.52 to $8.79 per share, resulting in an acquisition total of $127,038. These transactions were conducted under Fust's Rule 10b5-1 trading plan, which was adopted earlier this year on May 10, 2024. Following these transactions, Fust's direct ownership stands at 20,100 shares.
In other recent news, Neumora Therapeutics continues to make strides in the biopharmaceutical industry with its leading drug candidate, navacaprant. Mizuho Securities and RBC (TSX:RY) Capital have both maintained their Outperform ratings for the company, reflecting their confidence in the potential success of navacaprant which is currently in Phase 3 studies for the treatment of major depressive disorder (MDD). The Phase 3 KOASTAL-1 study results are expected in the fourth quarter of 2024, marking a significant milestone for Neumora.
In addition to navacaprant, Neumora has initiated a Phase 2 study for the same drug, exploring its potential in treating depression associated with bipolar II disorder. The top-line data from this study is anticipated in the second half of 2025. Neumora is also developing NMRA-511 for Alzheimer's disease-related agitation, adding another promising compound to the company's portfolio.
However, the U.S. Food and Drug Administration has placed a clinical hold on the Phase 1 trial of NMRA-266, another investigational treatment from Neumora, due to safety concerns. These recent developments are part of Neumora's ongoing commitment to addressing unmet needs in mental health care.
InvestingPro Insights
The recent stock transactions by Matthew K. Fust at Neumora Therapeutics Inc. (NASDAQ:NMRA) come at an interesting time for the company. According to InvestingPro data, Neumora's stock has shown strong performance recently, with a 35.05% return over the last month and a 50.05% return over the last three months. This upward trend aligns with Fust's decision to exercise options and subsequently sell shares.
However, investors should note that Neumora's financial health presents a mixed picture. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, Neumora's liquid assets exceed short-term obligations, suggesting good short-term liquidity.
On the other hand, the company is not currently profitable, with a negative operating income of $230.86 million in the last twelve months as of Q2 2024. This is reflected in another InvestingPro Tip, which indicates that analysts do not anticipate the company will be profitable this year.
The stock's current price of $16.96 is trading at a high Price/Book multiple of 7.11, which may suggest that the market has high expectations for future growth. However, investors should be aware that 3 analysts have revised their earnings downwards for the upcoming period, according to an InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Neumora Therapeutics, providing a more comprehensive view of the company's prospects and potential risks.
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