On September 5, 2023, Bhaskar Anand, the SVP, Chief Accounting Officer of Reata Pharmaceuticals Inc (RETA, Financial), sold 406 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 2,880 shares and purchased none.
Bhaskar Anand is a seasoned executive with extensive experience in the pharmaceutical industry. As the SVP, Chief Accounting Officer of Reata Pharmaceuticals, he plays a crucial role in the company's financial operations and strategic planning. His insider trading activities provide valuable insights into the company's financial health and future prospects.
Reata Pharmaceuticals Inc is a clinical-stage biopharmaceutical company that focuses on identifying, developing, and commercializing product candidates that modulate the activity of key regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a variety of serious or life-threatening diseases.
The insider transaction history for Reata Pharmaceuticals Inc shows a clear trend of insider selling. Over the past year, there have been 34 insider sells and no insider buys. This could indicate that insiders believe the company's stock is currently overvalued.
On the day of the insider's recent sell, shares of Reata Pharmaceuticals Inc were trading for $169.2 apiece, giving the stock a market cap of $6.484 billion. This is a significant figure that reflects the company's substantial size and influence in the pharmaceutical industry.
However, despite the high trading price, the GuruFocus Value of Reata Pharmaceuticals Inc is $231.75, indicating that the stock is modestly undervalued. The price-to-GF-Value ratio is 0.73, suggesting that the stock could be a good investment opportunity.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus. It is calculated based on 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, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by Bhaskar Anand, coupled with the overall trend of insider selling at Reata Pharmaceuticals Inc, could be a signal that insiders believe the stock is overvalued. However, the GF Value suggests that the stock is modestly undervalued, indicating potential for future growth. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
