On September 11, 2023, Leslie Tari, the Chief Scientific Officer of Cidara Therapeutics Inc (CDTX, Financial), sold 18,469 shares of the company. This move comes amidst a year where the insider has sold a total of 37,845 shares and purchased 10,000 shares.
Cidara Therapeutics Inc is a biotechnology company focused on the discovery, development, and commercialization of novel anti-infectives. The company's primary objective is to improve the standard of care for patients facing serious fungal or viral infections. The company's portfolio includes its lead antifungal candidate, rezafungin, in addition to antiviral conjugates (AVCs) for the prevention and treatment of influenza and other viral diseases from Cidara’s proprietary Cloudbreak® antiviral platform.
The insider's recent sell has raised questions about the company's current valuation and future prospects. To understand the implications of this move, it's essential to analyze the insider buy/sell trends and their relationship with the stock price.
The insider transaction history for Cidara Therapeutics Inc shows a higher number of sells than buys over the past year. There have been 8 insider sells and 3 insider buys in total. This trend could indicate that insiders, including the Chief Scientific Officer, may perceive the stock as overvalued, leading to the decision to sell their shares.
On the day of the insider's recent sell, shares of Cidara Therapeutics Inc were trading for $0.95 apiece, giving the stock a market cap of $101.082 million. Despite the insider's sell, the stock appears to be modestly undervalued based on its GuruFocus Value.
The GuruFocus Value of Cidara Therapeutics Inc is $1.41, resulting in a price-to-GF-Value ratio of 0.67. This ratio suggests that the stock is modestly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
While the insider's sell might raise concerns, the stock's current valuation suggests potential upside for investors. However, the insider sell/buy trends should be monitored closely as they could provide valuable insights into the company's perceived value by those with the most intimate knowledge of the company.
As always, potential investors should conduct their own due diligence and consider multiple factors before making investment decisions.
