Cogent Insider Sells $2.5 Million in Stock Amid Staggering 300% Price Surge

Evan Kearns, the chief legal officer at Cogent Biosciences (NASDAQ:COGT), reported an open-market sale of 65,000 shares for a transaction value of $2.52 million, according to a Dec. 30 SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($38.70); post-transaction value based on Dec. 26 market close price used in SEC calculations.

Key questions

• How significant was the reduction in Evan Kearns's holdings as a result of this transaction?
  The sale reduced Kearns's direct ownership by 37.27%, leaving him with 109,398 shares, notably shrinking his direct exposure to Cogent Biosciences equity.
• Did the transaction involve any derivative or indirect interests?
  No; the filing confirms all shares sold were held directly, with no involvement of equity awards, trusts, or other indirect entities.
• How does the transaction size compare to Kearns's trading history?
  This is the sole open-market sale by Kearns in the available record, so no recurring trade size trend is evident for open-market dispositions.
• What is the current market context for Cogent Biosciences shares?
  As of Dec. 26, the last reported price relevant to the transaction was $38.70, reflecting a one-year total return of 345.38%, while Kearns's post-sale holdings held an approximate market value of $4.25 million.

Company overview

Company snapshot

• Cogent's lead product candidate is CGT9486, a selective tyrosine kinase inhibitor targeting KIT D816V and other KIT exon 17 mutations, with a focus on systemic mastocytosis and advanced gastrointestinal stromal tumors.
• The biotech operates a precision medicine model, developing targeted therapies for genetically defined diseases, with revenue potential tied to successful drug development and commercialization, including licensing agreements such as with Plexxikon Inc. for bezuclastinib.
• Its primary customers are healthcare providers, oncologists, and institutions treating patients with rare genetic diseases and cancers driven by specific mutations.

Cogent Biosciences is a biotechnology company specializing in precision therapies for genetically defined diseases, leveraging its expertise in targeted kinase inhibition. The company’s strategic focus on rare mutations and licensing partnerships positions it to address unmet medical needs in oncology and rare disease markets. With a lean operational structure and a pipeline of innovative candidates, Cogent aims to create differentiated value in the competitive biotechnology sector.

What this transaction means for investors

Kearns’ sale comes after Cogent Biosciences shares surged following a November announcement of a public offering of common stock and convertible notes, a financing that materially strengthened the balance sheet and helped reset expectations around upcoming clinical milestones. The stock’s sharp move since then has also been driven by pipeline progress. Late last month, the company submitted its first NDA for bezuclastinib in non-advanced systemic mastocytosis, with additional filings planned in 2026.

Within that context, Kearns sold 65,000 shares at a weighted average price of $38.70, reducing his direct holdings by about 37%. The remaining 109,398 shares include previously reported stock underlying restricted stock units that are still subject to vesting conditions. This was Kearns’s only open-market sale on record and did not involve derivatives or indirect entities.

So what’s the takeaway for investors? After a triple-digit rally tied to financing and regulatory momentum, some insider liquidity is unsurprising. Cogent’s long-term value will ultimately hinge on clinical execution and regulatory follow-through, not a single post-offering sale.

Glossary

Open-market sale: The sale of securities on a public exchange, available to any buyer at prevailing market prices.
Form 4: A regulatory filing insiders must submit to report changes in their company stock ownership.
Direct holdings: Shares owned personally and directly by an individual, not through trusts or other entities.
Indirect holdings: Shares owned through another entity, such as a trust or family member, rather than held personally.
Derivative transactions: Trades involving financial contracts whose value is based on an underlying asset, like stock options.
Weighted average purchase price: The average price paid per share, weighted by the number of shares bought at each price.
Equity awards: Compensation granted in the form of company shares or options, often as part of employee incentives.
Insider trading: Buying or selling a company’s stock by someone with access to nonpublic, material information about the company.
Exon: A segment of a gene that codes for part of a protein; mutations here can affect disease.
Tyrosine kinase inhibitor: A drug that blocks enzymes (kinases) involved in the growth of cancer cells.
Systemic mastocytosis: A rare disease caused by the accumulation of abnormal mast cells in multiple organs.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.