Insider Buying: CEO Xiao Zhang Acquires 25,000 Shares of HF Foods Group Inc
On September 7, 2023, Xiao Zhang, the CEO of HF Foods Group Inc (NASDAQ:HFFG), made a significant insider purchase of 25,000 shares of the company. This move is noteworthy and deserves a closer look.
Xiao Zhang is a seasoned executive with a deep understanding of the food industry. As the CEO of HF Foods Group Inc, he has been instrumental in guiding the company's strategic direction and growth. His insider purchase could be a strong signal of his confidence in the company's future prospects.
HF Foods Group Inc is a leading food distributor in the U.S., providing a wide range of food products to Asian/Chinese restaurants and other foodservice customers throughout the Southeast, Pacific, and Mountain West regions. The company's extensive product portfolio, combined with its commitment to quality and service, has made it a preferred partner for many foodservice operators.
Over the past year, the insider has purchased a total of 125,048 shares and sold 0 shares. This recent acquisition of 25,000 shares further strengthens the insider's position in the company.
The insider transaction history for HF Foods Group Inc shows a positive trend. Over the past year, there have been 3 insider buys in total and 0 insider sells. This suggests that insiders are bullish about the company's prospects.
On the day of the insider's recent buy, shares of HF Foods Group Inc were trading for $4.53 apiece, giving the stock a market cap of $239.053 million. Despite this, the stock's GuruFocus Value is $9.77, indicating a price-to-GF-Value ratio of 0.46. This suggests that the stock is a possible value trap, and investors should think twice before making a decision.
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 company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase of 25,000 shares of HF Foods Group Inc is a positive signal. However, given the stock's current valuation, investors should exercise caution and conduct further research before making an investment decision.
This article first appeared on GuruFocus.
