Simulations Plus Stock Fair Value – Simulations Plus Director Cashes Out $2.3M in Stock
December 8, 2023
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Simulations Plus ($NASDAQ:SLP), Inc. is a leading provider of software and services for pharmaceutical development and regulatory submissions. Recently, according to a filing with the US Securities and Exchange Commission (SEC), a director of Simulations Plus has disposed of stocks amounting to $2.3M. This is a considerable sum and represents a sizeable chunk of the company’s stock.
This news of the director cashing out on stock worth $2.3M is likely to raise some eyebrows within the investors’ circle, as it could be interpreted as an act of capitalizing on the stock’s strong performance. Despite this, Simulations Plus’s financials continue to look promising and its future is still secure in the long run.
Market Price
On Wednesday, the stock of Simulations Plus saw a significant movement as the company’s Director, Michael R. Jung, cashed out $2.3 million worth of its stock. The stock opened at $39.3 and closed at $38.4, marking a 1.3% decrease from its prior closing price of 38.9. This marks a significant shift in the company’s stock prices, and could be an indication of a larger shift in the market.
It is unclear what prompted this massive sell-off or what implications this may have on the stock prices in the future. For now, investors will be closely monitoring Simulations Plus and its stock prices to determine the impact of this transaction. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Simulations Plus. More…
| Total Revenues | Net Income | Net Margin |
| 59.58 | 9.96 | 18.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Simulations Plus. More…
| Operations | Investing | Financing |
| 21.86 | 7.37 | -23.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Simulations Plus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 186.1 | 16.07 | 8.53 |
Key Ratios Snapshot
Some of the financial key ratios for Simulations Plus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.7% | -9.1% | 19.6% |
| FCF Margin | ROE | ROA |
| 29.5% | 4.3% | 3.9% |
Analysis – Simulations Plus Stock Fair Value
We at GoodWhale have conducted an analysis of SIMULATIONS PLUS‘s wellbeing and have come to the conclusion that their stock is currently undervalued. Our proprietary Valuation Line has calculated the fair value of the SIMULATIONS PLUS share to be around $56.2, whilst it is currently being traded at $38.4, making it a 31.7% discount. Therefore, we believe that investors can take advantage of this opportunity to purchase the stock at a bargain price. Additionally, we are confident that the company’s stock will perform well in the long run, given its solid fundamentals and strong financials. More…
Peers
The company was founded in 1986 and is headquartered in Lancaster, California. Simulations Plus Inc has three main competitors: Schrodinger Inc, Intercare DX Inc, and KDA Group Inc.
– Schrodinger Inc ($NASDAQ:SDGR)
Schrodinger Inc is a publicly traded company with a market capitalization of 1.52 billion as of 2022. The company has a return on equity of -15.16%. Schrodinger is a technology and software company that focuses on improving scientific discoveries through advanced computing. The company was founded in 1990 and is headquartered in New York City.
– Intercare DX Inc ($OTCPK:ICCO)
KDA Group Inc is a provider of engineering, construction and project management services. The company has a market cap of 14.81M as of 2022 and a Return on Equity of -120.56%. KDA Group Inc provides services to a range of industries including healthcare, education, commercial and institutional. The company has a strong focus on quality and safety and is committed to providing a high level of customer service.
Summary
Simulations Plus Inc. recently filed a document showing that a director of the company has sold stocks worth 2.3 million USD. As an investor, this news might induce concern as it could be interpreted as an indication that the company is not doing well. However, such a move could also be motivated by other reasons, such as diversification of assets or tax planning. Therefore, it’s important to analyze the company’s financials and performance in order to understand the motivation behind this transaction and make an informed decision about investing in Simulations Plus.
