Douglas Wheat, Chairman of the Board, Sells 70,000 Shares of Overseas Shipholding Group Inc
On September 6, 2023, Douglas Wheat, Chairman of the Board of Overseas Shipholding Group Inc (NYSE:OSG), sold 70,000 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which Wheat has sold a total of 353,000 shares and purchased none.
Overseas Shipholding Group Inc is a leading provider of energy transportation services for crude oil and petroleum products in the U.S. and international flag markets. The company operates a fleet of vessels that provide transportation services for crude oil and petroleum products in the U.S. Flag trades.
The insider's recent sell-off has raised eyebrows among investors and analysts, prompting a closer look at the company's stock performance and insider trading trends.
The insider transaction history for Overseas Shipholding Group Inc shows a clear trend of more sells than buys over the past year. There have been 15 insider sells and only 1 insider buy during this period. This could indicate that insiders, including Wheat, may have concerns about the company's future performance.
On the day of the insider's recent sell, shares of Overseas Shipholding Group Inc were trading at $4.27, giving the company a market cap of $331.302 million. The stock's price-earnings ratio stands at 7.85, lower than the industry median of 9.15 but higher than the company's historical median price-earnings ratio.
Despite the insider's sell-off, the stock appears to be significantly overvalued based on its GuruFocus Value. With a price of $4.27 and a GuruFocus Value of $2.81, the stock has a price-to-GF-Value ratio of 1.52.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples 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.
The insider's recent sell-off, coupled with the stock's overvaluation, may suggest that the stock's current price does not reflect its intrinsic value. Investors should exercise caution and conduct further research before making investment decisions.
As always, insider transactions should not be used in isolation to make investment decisions. Instead, they should be used as a starting point for further analysis, taking into account other factors such as the company's fundamentals, industry trends, and macroeconomic conditions.
This article first appeared on GuruFocus.
