David Kirn, CEO of 4D Molecular Therapeutics, Inc., sold more than $290,000 worth of his own company’s stock, numbering almost 13,000 shares at an average price of $22.49. The sale took place on July 10, according to a document filed with the SEC.
Exercising Options on FDMT
These sales are only a part of a larger picture, however. The July 10 transaction was only one transaction that took place that day. There were other trades conducted under a 105b-1 trading plan, which is a predetermined plan available to company insiders. Kirn was able to acquire shares under a special price by exercising options under this plan, purchasing nearly 12,000 shares for $14.42 each and around 1,000 shares for $15.78 each
On the same day that Kirn sold around 13,000 shares for approximately $290,000 he used his 105b-1 options to purchase roughly 13,000 shares for almost $190,000. Kirn continues to hold a position of FDMT stock valued at nearly $23 million, totaling more than a million shares. As of midday Monday, NASDAQ FDMT shares had traded up to a value of $27.33.
Transactions like this are a part of normal business dealings in publicly traded companies under SEC rules. Investors often look at trades like this for insights into how a business leader might feel about their own company’s current and future value. The general opinion about Kirn’s recent transaction is that it indicates Kirn’s continued confidence in the company.
Analyst Reports See Good Things in FDMT’s Future
4D Molecular Therapeutics’ high-tech offerings have caught the eye of analysts at multiple investment firms. Following the company’s presentation of an upcoming innovation—their wet Age-related Macular Degeneration (wAMD) population extension readout—to the American Society of Retina Specialists, the RBC Capital Markets firm once again gave the company an Outperform rating and raised their price target from $35 to $40. The wAMD program was viewed positively by other firms as well, such as Barclays Capital, Inc., which set a price target of $45 for FDMT along with an Overweight rating.
Other programs recently showcased by 4D Molecular Therapeutics include a Phase III trial on treatments for Cystic Fibrosis. They expect the trial to show that their treatment can improve lung function in patients, specifically increasing Forced Expiratory Volume in one second (FEV1) by 4-5%. Additionally, the company shared that a pipeline program for Geographic Atrophy (GA) is in the works, recently clearing its Investigational New Drug (IND) application.
Not all analyst reports were upgrades, though targets remained high even in the case of downgrades. In one such case, BMO Capital Markets lowered its already high target of $70 to the still-high target of $63. Overall, FDMT has been rated as a “Buy” by ten analysts, according to MarketBeat, which gives a consensus rating of “Buy” and a consensus target price of $45.63. They also report several hedge funds increasing investment in FDMT, including an over 700% increase by Allspring Global Investment Holdings LLC.
