Director VAN SANT R WILLIAM Sells 30,870 Shares of Graco Inc (GGG)
On September 13, 2023, Director VAN SANT R WILLIAM sold 30,870 shares of Graco Inc (NYSE:GGG), a leading manufacturer of fluid handling systems and components. This insider sale comes as part of a series of transactions made by the insider over the past year.
VAN SANT R WILLIAM is a key figure in Graco Inc, serving as a Director. His role involves overseeing the company's strategic direction and ensuring its financial performance aligns with the company's goals. His insider trading activities provide valuable insights into the company's financial health and future prospects.
Graco Inc is a global leader in the design, manufacture, and distribution of systems and equipment for fluid handling. Its products are used to move, measure, control, dispense, and spray fluid and powder materials. Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries.
Over the past year, VAN SANT R WILLIAM has sold a total of 51,690 shares and purchased 0 shares. This recent sale of 30,870 shares is a significant portion of the insider's transactions, indicating a potential shift in the insider's perception of the company's future performance.
The insider transaction history for Graco Inc shows a trend of more insider sells than buys over the past year. There have been 14 insider sells and only 1 insider buy during this period. This could suggest that insiders believe the company's stock is currently overvalued.
On the day of the insider's recent sale, Graco Inc's shares were trading for $75.08 each, giving the company a market cap of $12.71 billion. The price-earnings ratio stands at 25.58, which is higher than both the industry median of 21.73 and the companys historical median price-earnings ratio. This suggests that the stock may be overpriced compared to its earnings.
However, the GuruFocus Value of Graco Inc is $82.90, resulting in a price-to-GF-Value ratio of 0.91. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the insider's recent sale of Graco Inc shares, coupled with the company's high price-earnings ratio and the trend of more insider sells than buys, could suggest that the stock is currently overvalued. However, the stock's price-to-GF-Value ratio indicates that it is fairly valued. Investors should carefully consider these factors when making investment decisions.
This article first appeared on GuruFocus.
