Director Sharp Ingle Sells 2000 Shares of Ingles Markets Inc (IMKTA)
On September 28, 2023, Director Sharp Ingle sold 2,000 shares of Ingles Markets Inc (NASDAQ:IMKTA). This move comes amidst a year where the insider has sold a total of 40,500 shares and purchased none.
Sharp Ingle is a key figure in the Ingles Markets Inc, a leading supermarket chain with operations in the Southeastern United States. The company, founded in 1963, operates supermarkets under the Ingles brand, offering groceries, non-food products, perishables, and other locally sourced food products. The company also operates gas stations and offers pharmaceutical products through its in-store pharmacies.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 18 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Ingles Markets Inc were trading for $75.5 each, giving the company a market cap of $1.434 billion. The price-earnings ratio stands at 6.29, significantly lower than the industry median of 17.12 and the company's historical median price-earnings ratio.
Despite the insider's sell-off, the stock appears to be modestly undervalued. With a price of $75.5 and a GuruFocus Value of $87.87, Ingles Markets Inc has a price-to-GF-Value ratio of 0.86. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value is illustrated in the following image:
The insider's sell-off, coupled with the stock's modest undervaluation, presents a complex picture for potential investors. While the insider's actions may suggest a lack of confidence in the company's short-term prospects, the stock's valuation indicates potential for growth in the long term. As always, investors are advised to conduct their own thorough research before making any investment decisions.
This article first appeared on GuruFocus.
