On May 23, 2023, Yvonne Tran, Executive Vice President, Chief Legal Officer, and Chief People Officer of Schrodinger Inc (SDGR, Financial), sold 22,960 shares of the company's stock. This recent transaction is part of a broader trend of insider selling at Schrodinger Inc over the past year.
Who is Yvonne Tran?
Yvonne Tran has been with Schrodinger Inc since 2019, serving as the Executive Vice President, Chief Legal Officer, and Chief People Officer. In her role, she oversees the company's legal and human resources functions, contributing to the overall growth and success of the organization.
About Schrodinger Inc
Schrodinger Inc is a leading company in the field of computational chemistry and life sciences. The company develops software solutions and services that help researchers discover new drugs and materials more efficiently. Schrodinger's technology is used by pharmaceutical, biotechnology, and materials science companies worldwide to accelerate their research and development processes.
Insider Trading Analysis
Over the past year, Yvonne Tran has sold a total of 47,960 shares and purchased 0 shares. This recent sale of 22,960 shares is a continuation of her selling trend. The insider transaction history for Schrodinger Inc shows that there have been 0 insider buys in total over the past year, while there have been 6 insider sells during the same period.
This pattern of insider selling could be a cause for concern for some investors, as it may indicate that insiders are not confident in the company's future prospects. However, it is essential to consider other factors, such as the company's valuation and overall market conditions, before drawing any conclusions.
Valuation and Stock Price Relationship
On the day of Yvonne Tran's recent sale, shares of Schrodinger Inc were trading at $36.76 apiece, giving the stock a market cap of $2,655.905 million. The price-earnings ratio is 285.62, which is higher than the industry median of 26.17 and higher than the company's historical median price-earnings ratio.
With a price of $36.76 and a GuruFocus Value of $69.28, Schrodinger Inc has a price-to-GF-Value ratio of 0.53. This means the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, 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.
While the recent insider selling activity may raise concerns for some investors, the stock's current valuation suggests that Schrodinger Inc is significantly undervalued. Investors should consider the company's fundamentals, growth prospects, and overall market conditions before making any investment decisions.
It is crucial to keep in mind that insider trading activity is just one piece of the puzzle when evaluating a company's stock. Investors should always conduct thorough research and consider various factors before making any investment decisions.
