Director Janet Kerr Sells 4,582 Shares of La-Z-Boy Inc (LZB)
On September 25, 2023, Janet Kerr, a director at La-Z-Boy Inc (NYSE:LZB), sold 4,582 shares of the company. This move comes as part of a trend observed over the past year, where the insider has sold a total of 4,582 shares and purchased none.
Janet Kerr is a seasoned executive with a wealth of experience in the corporate world. She has been a director at La-Z-Boy Inc, a leading manufacturer, marketer, and retailer of upholstery products, for several years. The company is well-known for its iconic recliners and has a strong presence in the residential furniture industry.
La-Z-Boy Inc, headquartered in Monroe, Michigan, operates through its three reportable operating segments: the Upholstery segment, the Casegoods segment, and the Retail segment. The Upholstery segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. The Casegoods segment includes bedroom sets, dining room sets, entertainment centers, and occasional pieces. The Retail segment primarily sells upholstered furniture to end consumers through the retail network.
The insider's recent sell-off has raised some eyebrows in the investment community. Over the past year, there have been no insider buys at La-Z-Boy Inc, while there has been one insider sell. This could potentially signal a lack of confidence in the company's future prospects.
However, it's important to note that insider selling doesn't necessarily indicate a negative outlook. Insiders may sell shares for a variety of reasons, including personal financial planning or diversification. Therefore, it's crucial to consider other factors when evaluating a company's investment potential.
On the day of the insider's recent sell, shares of La-Z-Boy Inc were trading at $30.86, giving the company a market cap of $1.316 billion. The stock's price-earnings ratio stood at 9.49, lower than both the industry median of 18.26 and the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical standards.
According to GuruFocus Value, which is based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, La-Z-Boy Inc has a GF Value of $32.50. With a price-to-GF-Value ratio of 0.95, the stock is considered fairly valued.
In conclusion, while the insider's recent sell-off may raise some concerns, the stock's valuation metrics suggest that it may still offer good value for investors. As always, potential investors should conduct their own thorough research before making investment decisions.
This article first appeared on GuruFocus.
