On September 12, 2023, Jason Throne, the Chief Legal Officer of IDEAYA Biosciences Inc (IDYA, Financial), sold 1,000 shares of the company. This move is part of a trend observed over the past year, where Throne has sold a total of 23,807 shares and made no purchases.
IDEAYA Biosciences Inc is a precision oncology company focused on the discovery and development of targeted therapeutics for patient populations selected using molecular diagnostics. The company's approach integrates extensive capabilities in identifying and validating translational biomarkers with a discovery platform that can rapidly and cost-effectively discover and develop targeted cancer therapeutics.
The insider transaction history for IDEAYA Biosciences Inc shows a clear trend towards selling. Over the past year, there have been 11 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of IDEAYA Biosciences Inc were trading for $30.01 apiece, giving the stock a market cap of $1.69 billion. This is significantly higher than the GuruFocus Value of $14.76, indicating that the stock is significantly overvalued.
The GuruFocus Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. The GF Value for IDEAYA Biosciences Inc is shown in the following image:
The price-to-GF-Value ratio of 2.03 suggests that the stock is significantly overvalued. This could be a contributing factor to the insider's decision to sell shares. However, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio.
In conclusion, the recent insider sell by Jason Throne, along with the overall trend of insider selling at IDEAYA Biosciences Inc, could be a signal for investors to exercise caution. The stock's current valuation also suggests that it may be overpriced. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
