IGM Biosciences CEO sells over $45,000 worth of stock via Investing.com

IGM Biosciences, Inc. (NASDAQ: ) CEO and Chairman Fred Schwarzer sold some of his company’s stock, he 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 common shares at a weighted average price of $11.5388, for a total of approximately $45,532.

The sale was made in multiple transactions, with prices ranging from $11.20 to $11.795 per share. This sale was made primarily to cover withholding tax obligations arising from the transfer of restricted stock units, a common practice among executives receiving stock-based compensation.

Following this transaction, Schwarzer’s direct holdings in IGM Biosciences decreased, but he still retains a significant stake in the company. According to the filing, the CEO directly owns 250,124 shares after the sale. In addition, the filing disclosed that Schwarzer has indirect ownership of 196,718 shares held by the Schwarzer Family Trust.

Investors often monitor insider trading because it provides information about executives’ perspectives on the company’s current valuation and future prospects. Schwarzer’s sale may draw attention from the investment community as it gauges the potential implications for IGM Biosciences’ stock performance.

IGM Biosciences, based in Mountain View, California, is a biotechnology company specializing in pharmaceutical preparations. The company’s shares are publicly traded on the NASDAQ stock exchange, where investors can track the stock’s performance under the ticker symbol IGMS.

In other recent news, IGM Biosciences reported its second quarter financial results, revealing a net loss of $0.79 per share, which differed significantly from the initially estimated net income of $0.21 per share. This was primarily due to collaboration revenues falling short of expectations. The company’s research and development expenses for the quarter were $42.0 million, with selling, general and administrative expenses coming in at $10.6 million.

As a result, HC Wainwright adjusted its full-year 2024 net loss projection for IGM Biosciences to $2.31 per share, a considerable improvement from the previously estimated net loss of $3.27 per share. The company ended the second quarter with approximately $256.4 million in cash reserves.

In other recent developments, IGM Biosciences has made significant progress in its early stage. Morgan Stanley maintained an overweight rating on the company, noting the ongoing Phase 1b trial of imvotamab in rheumatoid arthritis and systemic lupus erythematosus and the completion of enrollment for aplitabart in a Phase 1a/1b trial in colorectal cancer.

RBC Capital also adjusted its outlook on IGM Biosciences, lowering its price target but maintaining an Outperform rating. Finally, IGM Biosciences perfected its collaboration with Sanofi (NASDAQ: ), now focusing exclusively on immunology and inflammation targets.

InvestingPro Insights

IGM Biosciences, Inc. (NASDAQ:IGMS) has seen significant movements in its share price recently, with a noteworthy last week return of 50.6% and an even more impressive year-to-date total price return of 112.76%. This level of performance is often a signal for investors to pay more attention to a company’s stock, and in the case of IGM Biosciences, there are several key indicators and InvestingPro tips that could provide additional context to these numbers.

One of the InvestingPro Tips indicates that IGM Biosciences has more cash than debt on its balance sheet, which can be a positive sign of financial stability for potential investors. This is especially relevant given the recent sale of stock by the company’s CEO, Fred Schwarzer, to cover tax liabilities. In addition, the company’s liquid assets exceed short-term 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 anticipate that it will be profitable this year. Moreover, the company is burning cash quickly, which is 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. While revenue has grown 74% over the past twelve months, the company suffers from poor gross profit margins, which is reflected in the gross profit margin figure of -6530.02%. These metrics could be important to investors trying to gauge the company’s growth prospects and valuation.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on the InvestingPro platform that may further guide investment decisions regarding IGM Biosciences. As of now, there are 16 additional tips listed at https://www.investing.com/pro/IGMS that provide a comprehensive picture of the company’s financial health and stock performance.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.