Insider Sell: Sharon Mates Sells 100,000 Shares of Intra-Cellular Therapies Inc
On September 19, 2023, Sharon Mates, Chairman, President & CEO of Intra-Cellular Therapies Inc (NASDAQ:ITCI), sold 100,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 245,856 shares and purchased none.
Sharon Mates is a key figure at Intra-Cellular Therapies Inc, a biopharmaceutical company that develops novel drugs for the treatment of neuropsychiatric and neurologic diseases. The company's lead product, lumateperone, is a compound that provides selective and simultaneous modulation of serotonin, dopamine, and glutamate - three neurotransmitter pathways implicated in severe mental illnesses.
The insider's recent sell has raised eyebrows in the investment community, as it comes amidst a period of no insider buys over the past year. In fact, there have been 27 insider sells in total over the same timeframe. This trend is illustrated in the following image:
The relationship between insider sell/buy patterns and stock price is often scrutinized by investors. In the case of Intra-Cellular Therapies Inc, the stock was trading at $53.94 per share on the day of the insider's recent sell, giving the company a market cap of $5.22 billion.
When comparing the stock's price to its GuruFocus Value of $215.52, we find a price-to-GF-Value ratio of 0.25. This suggests that the stock is a possible value trap, and investors should think twice before making a move. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value for Intra-Cellular Therapies Inc is shown in the following image:
In conclusion, the recent sell by Sharon Mates, coupled with the lack of insider buys over the past year, may raise concerns for potential investors. However, it's crucial to consider all factors, including the company's GF Value and market cap, before making any investment decisions.
This article first appeared on GuruFocus.
