Director John Russell Sells 19,000 Shares of CMS Energy Corp
On November 2, 2023, John Russell, a director at CMS Energy Corp (NYSE:CMS), sold 19,000 shares of the company. This move comes as part of a series of insider transactions that have taken place over the past year.
John Russell is a seasoned executive with a wealth of experience in the energy sector. He has served as a director at CMS Energy Corp, a company that is primarily focused on providing electricity and natural gas to its customers. CMS Energy Corp operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity. The Gas Utility segment is involved in the purchase, transmission, storage, distribution, and sale of natural gas. The Enterprises segment engages in independent power production and marketing, including renewable energy projects.
Over the past year, the insider has sold a total of 19,000 shares and has not made any purchases. This trend is consistent with the overall insider transaction history for CMS Energy Corp, which shows zero insider buys and six insider sells over the past year.
The relationship between insider transactions and stock price can often provide valuable insights into the company's performance and the insiders' perception of its future prospects. In the case of CMS Energy Corp, the stock was trading at $55.53 per share on the day of the insider's recent sale, giving the company a market cap of $16.26 billion.
The company's price-earnings ratio stands at 21.97, which is higher than both the industry median of 14.86 and the company's historical median price-earnings ratio. This could suggest that the stock is currently overvalued, which might explain the insider's decision to sell.
However, when considering the GuruFocus Value of $70.99, CMS Energy Corp appears to be modestly undervalued with a price-to-GF-Value ratio of 0.78. The GF Value is an intrinsic value estimate developed by GuruFocus, taking into account historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
In conclusion, while the insider's recent sale might raise some eyebrows, it's important to consider the broader context. The stock's current valuation metrics suggest that it might be overvalued, but the GuruFocus Value indicates that it could be modestly undervalued. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
