On September 8, 2023, Shannon Klinger, Chief Legal Officer of Moderna Inc (MRNA, Financial), sold 557 shares of the company. This move is part of a broader trend of insider selling at Moderna Inc, which we will explore in this article.
Shannon Klinger is a key figure at Moderna Inc, serving as the Chief Legal Officer. In this role, she oversees all legal, compliance, and regulatory affairs for the company. Her recent sale of shares is noteworthy and may signal important insights into the company's current financial health and future prospects.
Moderna Inc is a pioneer in the biotechnology industry, specializing in drug discovery, drug development, and vaccine technologies based on messenger RNA. The company's aim is to create a new generation of transformative medicines for patients. Moderna's proprietary platform aims to improve the underlying capabilities of the human body's cellular machinery to fight off diseases.
Over the past year, the insider has sold a total of 2,288 shares and purchased 0 shares. This trend of selling without any insider buying raises questions about the company's current valuation and future prospects.
The insider transaction history for Moderna Inc shows a total of 109 insider sells over the past year, with no insider buys. This trend could be a red flag for potential investors, as it may indicate that insiders believe the company's stock is overvalued.
On the day of the insider's recent sale, shares of Moderna Inc were trading for $107.22 apiece, giving the company a market cap of $40.27 billion. The price-earnings ratio is 39.04, which is higher than both the industry median of 31.49 and the company’s historical median price-earnings ratio. This suggests that the stock may be overpriced compared to its earnings.
However, according to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Moderna Inc is modestly undervalued. With a price of $107.22 and a GuruFocus Value of $123.17, the stock has a price-to-GF-Value ratio of 0.87.
In conclusion, while the insider's recent sale and the overall trend of insider selling at Moderna Inc may raise concerns, the company's modest undervaluation according to the GuruFocus Value suggests that the stock may still be a good investment. However, potential investors should carefully consider these factors and conduct further research before making a decision.
