Director TABACCO JOSEPH J JR Buys 21,000 Shares of Overstock.com Inc
On October 30, 2023, Director TABACCO JOSEPH J JR of Overstock.com Inc (NASDAQ:OSTK) made a significant purchase of 21,000 shares of the company's stock. This move is noteworthy as insider buying can often be a positive indicator of a company's future performance.
Overstock.com Inc is an American internet retailer selling primarily furniture and home decor. The company initially sold exclusively surplus and returned merchandise on an online e-commerce marketplace, liquidating the inventories of at least 18 failed dot-com companies at below-wholesale prices. Overstock has since expanded to sell new merchandise as well.
Insider buying refers to when a company's executives, directors, or other insiders purchase the company's stock. This is often seen as a positive sign as these individuals have the most intimate knowledge of the company's workings and future prospects. Conversely, insider selling is when these individuals sell their shares, which can sometimes be seen as a negative sign.
Over the past year, the insider has purchased a total of 31,000 shares and has not sold any shares. This recent purchase of 21,000 shares is a continuation of this trend.
The insider transaction history for Overstock.com Inc shows a balanced activity with 8 insider buys and 8 insider sells over the past year. This recent purchase by the insider adds to the buy side of this equation.
On the day of the insider's recent buy, shares of Overstock.com Inc were trading for $14.19 apiece, giving the stock a market cap of $699.964 million.
With a price of $14.19 and a GuruFocus Value of $24.65, Overstock.com Inc has a price-to-GF-Value ratio of 0.58. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by TABACCO JOSEPH J JR could be a positive sign for Overstock.com Inc. However, with a price-to-GF-Value ratio of 0.58, potential investors should exercise caution and conduct further research before making an investment decision.
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.
