On September 14, 2023, James Hinrichs, a director at Orthofix Medical Inc (NASDAQ:OFIX), made a significant insider purchase of 7,500 shares of the company's stock. This move is noteworthy and deserves a closer look.
James Hinrichs is a seasoned executive with a wealth of experience in the healthcare industry. He has served in various leadership roles, including as the CFO of Alere Inc., a global manufacturer of rapid point-of-care diagnostic tests. His expertise in financial management and strategic planning is a valuable asset to Orthofix Medical Inc.
Orthofix Medical Inc is a diversified, global medical device company focused on improving patients' lives by providing superior reconstructive and regenerative orthopedic and spine solutions to physicians worldwide. The company has a rich history of developing innovative, minimally invasive products that help surgeons treat their patients better.
Over the past year, Hinrichs has purchased a total of 7,500 shares and has not sold any shares. This suggests a strong belief in the company's future prospects.
The insider transaction history for Orthofix Medical Inc shows a total of 1 insider buy over the past year, compared to 2 insider sells. This could indicate a shift in sentiment among the company's insiders.
On the day of the insider's recent buy, shares of Orthofix Medical Inc were trading at $13.47, giving the company a market cap of $496.708 million.
With a price of $13.47 and a GuruFocus Value of $28.38, Orthofix Medical Inc has a price-to-GF-Value ratio of 0.47. This suggests that the stock is currently undervalued and could be a potential value trap. Investors should exercise caution and conduct further research before making a decision.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on 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.
In conclusion, the recent insider purchase by James Hinrichs could signal a positive outlook for Orthofix Medical Inc. However, given the stock's current valuation, investors should carefully consider their investment decision.
This article first appeared on GuruFocus.