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 insider sell comes amidst a year where Tran has sold a total of 47,960 shares and purchased 0 shares.
About Yvonne Tran
Yvonne Tran has been with Schrodinger Inc since 2018, serving as the Executive Vice President, Chief Legal Officer, and Chief People Officer. She plays a crucial role in the company's legal and human resources departments, ensuring compliance and fostering a positive work environment.
About Schrodinger Inc
Schrodinger Inc is a leading company in the field of computational software for drug discovery and materials science. The company's software solutions are designed to accelerate the research and development of novel therapeutics and materials by providing cutting-edge molecular simulations. Schrodinger's technology is used by pharmaceutical, biotechnology, and materials science companies worldwide to enhance their research capabilities and improve the efficiency of their R&D processes.
Insider Trends
The insider transaction history for Schrodinger Inc over the past year reveals a trend of insider selling, with 0 insider buys and 6 insider sells. This could be an indication that insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to cash in on their holdings.
Valuation
On the day of Yvonne Tran's recent sell, shares of Schrodinger Inc were trading at $36.76 apiece, giving the stock a market cap of $2,547.895 million. The price-earnings ratio stands at 274.00, which is significantly higher than the industry median of 25.42 and the company's historical median price-earnings ratio.
With a current price of $36.76 and a GuruFocus Value of $69.28, Schrodinger Inc has a price-to-GF-Value ratio of 0.53. This suggests that the stock is significantly undervalued based on its GF Value. However, it is essential to consider other factors, such as the company's growth prospects and industry trends, before making any investment decisions.
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.
In conclusion, Yvonne Tran's recent sale of 22,960 shares of Schrodinger Inc (SDGR, Financial) may raise questions about the company's valuation and future prospects. While the stock appears to be significantly undervalued based on its GF Value, the high price-earnings ratio and the trend of insider selling over the past year warrant further investigation. Investors should carefully consider these factors and conduct thorough research before making any decisions regarding Schrodinger Inc.
