Director Sharp Ingle Sells 2,000 Shares of Ingles Markets Inc (IMKTA)
On September 29, 2023, Director Sharp Ingle sold 2,000 shares of Ingles Markets Inc (NASDAQ:IMKTA). This transaction is part of a series of insider sales by Ingle over the past year, totaling 42,500 shares sold and no shares purchased.
Sharp Ingle is a key figure in the Ingles Markets Inc, a leading supermarket chain with operations in the Southeastern United States. The company operates supermarkets under the Ingles brand, offering groceries, dairy products, meat, and other daily necessities. It also provides in-store services such as pharmacies and fuel centers. The company's commitment to customer service and community involvement has made it a staple in the regions it serves.
The insider's recent sale comes amidst a trend of insider selling at Ingles Markets Inc. Over the past year, there have been 19 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sale, shares of Ingles Markets Inc were trading at $75.05, giving the company a market cap of $1.431 billion. The price-earnings ratio was 6.27, significantly lower than the industry median of 17.15 and the company's historical median price-earnings ratio. This suggests that the stock may be undervalued.
The GuruFocus Value of Ingles Markets Inc is $87.90, resulting in a price-to-GF-Value ratio of 0.85. This indicates that the stock is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value is illustrated in the following image:
Despite the insider's recent sale, the undervaluation of Ingles Markets Inc's stock suggests potential for future growth. However, the trend of insider selling may be a cause for concern. Investors should carefully consider these factors when making investment decisions.
As always, insider transactions should not be used in isolation to make investment decisions. Instead, they should be used as a tool to better understand the actions of company insiders and how these actions may reflect on the company's future performance.
This article first appeared on GuruFocus.
