Atara Biotherapeutics, Inc. (NASDAQ:ATRA) has reported a recent stock transaction involving one of its top executives. Jill Henrich, the company's EVP, Global Head of Regulatory Affairs (RA) & Quality, sold 25,750 shares of common stock at an average price of $0.617, according to a new SEC filing. The total value of the shares sold amounts to approximately $15,887.
The transaction was executed automatically to cover tax withholding obligations connected with the vesting of restricted stock units, as per the company's award agreement. This sale-to-cover practice is common among corporate executives and is often part of their compensation package.
The sale took place on May 16, 2024, and the reported sale price represents the weighted average price of shares sold over two days—May 16 and May 17—by a broker on behalf of a group of Atara employees. The proceeds were used to satisfy the payment of withholding tax liabilities for these employees.
Following the transaction, Henrich's ownership in the company stands at 529,251 shares of Atara Biotherapeutics, Inc. stock, indicating a continued significant stake in the company's performance.
Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. However, it's important to note that such sales can be motivated by various personal financial planning reasons and do not necessarily reflect a lack of confidence in the company.
Atara Biotherapeutics, based in Thousand Oaks, California, specializes in developing treatments for patients with serious diseases including cancer, autoimmune, and viral diseases.
InvestingPro Insights
Amidst the recent insider transaction at Atara Biotherapeutics, Inc. (NASDAQ:ATRA), investors may be seeking a broader financial perspective on the company. According to the latest data from InvestingPro, Atara Biotherapeutics holds a market capitalization of $85.5 million. Despite the challenges indicated by a negative P/E ratio of -0.34, the company has experienced a significant return over the last week, with a 17.36% price total return.
An InvestingPro Tip suggests that analysts are optimistic about the company's sales growth in the current year, which could signal potential for future expansion. On the other hand, the company is noted to be quickly burning through cash, which is a critical factor for investors to consider, especially when paired with the fact that Atara's short-term obligations exceed its liquid assets.
For those looking to delve deeper into Atara Biotherapeutics' financial health and future prospects, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available for ATRA, which can be found at https://www.investing.com/pro/ATRA. Investors interested in these comprehensive analytics can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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