On May 25, 2023, Stephane Bancel, the CEO of Moderna Inc (MRNA, Financial), sold 80,000 shares of the company's stock. This move comes as part of a series of transactions by Bancel over the past year, during which he has sold a total of 4,220,000 shares and purchased none.
Who is Stephane Bancel of Moderna Inc?
Stephane Bancel has been the CEO of Moderna Inc since 2011. Under his leadership, the company has grown significantly and has become a key player in the biotechnology industry. Moderna Inc is a pioneer in the development of mRNA-based therapies and vaccines, which have shown great promise in treating various diseases, including COVID-19.
Moderna Inc's Business Description
Moderna Inc is a clinical-stage biotechnology company focused on the discovery, development, and commercialization of mRNA-based therapeutics and vaccines. The company's proprietary mRNA technology platform enables the development of a new class of medicines that can direct the body's cells to produce proteins capable of fighting or preventing diseases. Moderna's pipeline includes programs in infectious diseases, immuno-oncology, rare diseases, and cardiovascular diseases.
Insider Trends
The insider transaction history for Moderna Inc reveals that there have been no insider buys over the past year. In contrast, there have been 130 insider sells during the same period. This trend suggests that insiders may be taking advantage of the stock's recent gains to cash in on their investments.
Valuation
On the day of Stephane Bancel's recent sale, shares of Moderna Inc were trading at $129.4 apiece, giving the stock a market cap of $48,123.867 million. The price-earnings ratio stands at 10.91, which is lower than the industry median of 30.46 and higher than the company's historical median price-earnings ratio.
With a price of $129.4 and a GuruFocus Value of $468.76, Moderna Inc has a price-to-GF-Value ratio of 0.28. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Analysis of Insider Buy/Sell and Relationship with Stock Price
The significant number of insider sells over the past year, coupled with the absence of insider buys, may raise concerns for some investors. However, it is essential to consider the context of these transactions and the overall performance of the company. Moderna Inc has experienced substantial growth in recent years, particularly due to its successful COVID-19 vaccine. This growth has led to an increase in the stock price, which may have prompted insiders like Stephane Bancel to sell their shares.
Despite the insider selling activity, the stock's current valuation suggests that it is significantly undervalued. This could present an attractive opportunity for investors who believe in the long-term potential of Moderna Inc and its mRNA technology platform. As always, it is crucial for investors to conduct their research and consider various factors before making any investment decisions.
