On June 21, 2023, CEO and 10% Owner David Lazar sold 3,747,968 shares of Titan Pharmaceuticals Inc (TTNP, Financial), a biopharmaceutical company focused on developing proprietary therapeutics for the treatment of select chronic diseases. This insider sell comes after a year of mixed insider trading activity, with Lazar purchasing 2,283,690 shares and selling 3,747,968 shares in total.
Who is David Lazar?
David Lazar is the CEO and a 10% owner of Titan Pharmaceuticals Inc. He has been with the company since 2018 and has played a significant role in the development and commercialization of the company's products. With over 20 years of experience in the pharmaceutical industry, Lazar has a deep understanding of the market and the challenges faced by companies like Titan Pharmaceuticals.
About Titan Pharmaceuticals Inc
Titan Pharmaceuticals Inc is a biopharmaceutical company that focuses on the development of proprietary therapeutics for the treatment of select chronic diseases. The company's lead product is Probuphine, a subdermal implant for the maintenance treatment of opioid dependence. Titan Pharmaceuticals is also developing a pipeline of other products targeting various chronic conditions, including Parkinson's disease and hypothyroidism.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, David Lazar has sold 3,747,968 shares in total and purchased 2,283,690 shares in total. The insider transaction history for Titan Pharmaceuticals Inc shows that there have been 2 insider buys in total over the past year. Meanwhile, there have been 1 insider sell over the same timeframe.
The stock price of Titan Pharmaceuticals Inc has been volatile over the past year, with the price reaching a high of $2.50 in August 2022 and a low of $0.50 in December 2022. The recent sale by David Lazar occurred when the stock was trading at $1.23, which is close to the midpoint of the stock's 52-week range. This could indicate that Lazar believes the stock is fairly valued at its current price and decided to take some profits off the table.
Valuation
Shares of Titan Pharmaceuticals Inc were trading for $1.23 apiece on the day of David Lazar’s recent sell. This gives the stock a market cap of $9.758 million.
With a price of $1.23 and a GuruFocus Value of $0.05, Titan Pharmaceuticals Inc has a price-to-GF-Value ratio of 24.6. This means the stock is significantly overvalued 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.
Given the stock's current valuation and the recent insider sell by David Lazar, investors should exercise caution when considering an investment in Titan Pharmaceuticals Inc. While the company has a promising pipeline of products, the stock's current price may not accurately reflect its true value.
