Morphic Holding Inc CFO and COO Marc Schegerin Sells 20,000 Shares
On September 7, 2023, Marc Schegerin, the CFO and COO of Morphic Holding Inc (NASDAQ:MORF), sold 20,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 121,670 shares and purchased none.
Morphic Holding Inc is a biopharmaceutical company focused on the development of oral small-molecule therapies designed to modulate proteins in the body to address serious diseases. The company's research is based on its proprietary MInT technology platform, which enables the discovery of novel drugs designed to draw upon the body's natural regulatory mechanisms.
The insider's recent sell comes amidst a backdrop of 23 insider sells and only 1 insider buy over the past year. This could potentially signal a lack of confidence in the company's future prospects amongst its insiders. However, it's also important to note that insider selling can occur for a variety of reasons, and it doesn't necessarily indicate a negative outlook for the company.
On the day of the insider's recent sell, shares of Morphic Holding Inc were trading at $54.34, giving the company a market cap of $2.61 billion.
According to GuruFocus Value, the stock is significantly overvalued with a price-to-GF-Value ratio of 9.1. The GF Value is an intrinsic value estimate that takes into account historical multiples 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. With a price of $54.34 and a GuruFocus Value of $5.97, it appears that the market may be overestimating the company's future growth prospects.
In conclusion, the insider's recent sell of 20,000 shares, along with the overall trend of insider selling at Morphic Holding Inc, could potentially be a cause for concern for investors. However, it's also important to consider the company's current valuation and future growth prospects when making investment decisions.
This article first appeared on GuruFocus.
