On June 2, 2023, Laurie Stelzer, the Chief Financial Officer of Mirati Therapeutics Inc (MRTX, Financial), sold 4,647 shares of the company's stock. This recent transaction is part of a series of insider sales over the past year, which we will analyze in this article, along with the company's business description, insider trends, and valuation.
Who is Laurie Stelzer of Mirati Therapeutics Inc?
Laurie Stelzer serves as the Chief Financial Officer of Mirati Therapeutics Inc, a clinical-stage biotechnology company focused on developing a pipeline of targeted oncology products for the treatment of solid tumors. Stelzer has been with the company since 2018 and has extensive experience in finance, strategy, and operations within the biotechnology and pharmaceutical industries.
Mirati Therapeutics Inc's Business Description
Mirati Therapeutics Inc is a clinical-stage biotechnology company that focuses on the development of novel therapeutics for the treatment of cancer. The company's pipeline includes product candidates targeting specific genetic and epigenetic drivers of cancer, which are designed to inhibit the growth of tumor cells while sparing healthy cells. Mirati's lead product candidate, adagrasib, is an investigational small molecule inhibitor of the KRAS G12C mutation, which is found in various types of cancer, including non-small cell lung cancer, colorectal cancer, and pancreatic cancer.
Analysis of Insider Buy/Sell and the Relationship with the Stock Price
Over the past year, Laurie Stelzer has sold a total of 4,647 shares and has not purchased any shares. The insider transaction history for Mirati Therapeutics Inc shows that there have been no insider buys in total over the past year, while there have been 16 insider sells during the same period.
The trend of insider selling could be a cause for concern for investors, as it may indicate that insiders believe the stock is overvalued or that they are losing confidence in the company's prospects. However, it is essential to consider other factors, such as the company's financial performance, industry trends, and overall market conditions, before drawing any conclusions.
Valuation
Shares of Mirati Therapeutics Inc were trading for $37.06 apiece on the day of Laurie Stelzer's recent sale, giving the stock a market cap of $2,226.230 million.
With a price of $37.06 and a GuruFocus Value of $189.39, Mirati Therapeutics Inc has a price-to-GF-Value ratio of 0.2. This means the stock is considered a Possible Value Trap, and investors should think twice before investing based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is 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.
In conclusion, while the recent insider selling by CFO Laurie Stelzer and the overall trend of insider sales at Mirati Therapeutics Inc may raise concerns for investors, it is crucial to consider the company's valuation, financial performance, and industry trends before making any investment decisions. The stock's current price-to-GF-Value ratio suggests that it may be a possible value trap, and investors should exercise caution and conduct thorough research before investing in Mirati Therapeutics Inc.
