On June 7, 2023, Juan Graham, the Chief Financial Officer of FibroGen Inc (FGEN, Financial), sold 1,785 shares of the company's stock. This recent transaction is part of a series of insider sales by Graham over the past year, totaling 19,563 shares sold and no shares purchased.
FibroGen Inc is a biopharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics to treat serious unmet medical needs. The company's product pipeline includes therapies for anemia, fibrotic diseases, and cancer.
Insider Trends
The insider transaction history for FibroGen Inc reveals a trend of insider selling over the past year, with 29 insider sells and 0 insider buys. This could be an indication that insiders believe the stock is overvalued or that they are taking profits off the table.
Valuation
On the day of Juan Graham's recent sale, shares of FibroGen Inc were trading at $16.99 apiece, giving the stock a market cap of $1.657 billion.
The GuruFocus Value for FibroGen Inc is $17.86, resulting in a price-to-GF-Value ratio of 0.95. This indicates that the stock is Fairly Valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, which is 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, it is essential to consider the overall context of the company's performance and valuation. FibroGen Inc's stock is currently trading at a Fairly Valued level based on its GF Value, and the company has a strong pipeline of potential therapies in development. Investors should continue to monitor insider transactions and other relevant financial data to make informed decisions about their investments in FibroGen Inc.
