On September 13, 2023, Hideki Garren, the Chief Medical Officer of Prothena Corp PLC (PRTA, Financial), sold 2,000 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 46,000 shares and purchased none.
Prothena Corp PLC is a biotechnology company focused on the discovery and development of novel therapies for life-threatening diseases. The company's pipeline includes treatments for neurodegenerative diseases, including rare peripheral amyloidoses and neurodegenerative diseases such as Alzheimer's disease and Parkinson's disease.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been 67 insider sells and no insider buys for Prothena Corp PLC.
The above image shows the trend of insider trading activities. It is clear that the insider sell activities have been more frequent than the buy activities, which could be a signal for investors to be cautious.
On the day of the insider's recent sell, Prothena Corp PLC's shares were trading at $55.48 each, giving the company a market cap of $2.898 billion.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Prothena Corp PLC's stock is modestly undervalued. The stock's price-to-GF-Value ratio is 0.87, with a GF Value of $63.44.
The above image shows the GF Value of Prothena Corp PLC. Despite the insider's recent sell, the stock appears to be modestly undervalued, which could present a potential opportunity for investors.
However, the insider's sell activities over the past year, coupled with the lack of insider buys, could be a cause for concern. Investors should keep a close eye on the company's stock performance and insider trading activities to make informed decisions.
In conclusion, while Prothena Corp PLC's stock appears to be modestly undervalued, the insider's sell activities could be a signal for investors to be cautious. As always, it is crucial for investors to conduct their own research and consider multiple factors before making investment decisions.
