Insider Buying: Hillenbrand Inc's CFO Acquires Shares
Robert Vanhimbergen, Sr. VP and CFO of Hillenbrand Inc (NYSE:HI), has recently increased the insider's stake in the company. According to a SEC Filing dated 2024-02-09, the insider purchased 11,319 shares of the company's stock.
Hillenbrand Inc is a global diversified industrial company that manufactures and sells premium business-to-business products and services for a wide variety of industries. The company operates through multiple segments, including Process Equipment Group and Batesville. The Process Equipment Group designs, produces, markets, and services highly engineered industrial equipment around the world, while Batesville is a recognized leader in the death care industry in North America.
Insider buying and selling activities are closely monitored by investors as they can provide insights into a company's internal perspective. An insider purchase can indicate the insider's confidence in the company's future prospects or that the stock is undervalued. Conversely, insider selling might suggest the opposite, although it can also occur for personal reasons unrelated to the company's performance.
Over the past year, Robert Vanhimbergen has purchased a total of 12,574 shares and has not sold any shares. The insider transaction history for Hillenbrand Inc shows a pattern of 7 insider buys and 6 insider sells over the past year.
On the date of the insider's recent transaction, shares of Hillenbrand Inc were trading at $45.23, resulting in a market cap of $3.296 billion.
The price-earnings ratio of Hillenbrand Inc stands at 6.09, which is lower than the industry median of 20.54 and also below the company's historical median price-earnings ratio. This could suggest that the stock is undervalued in comparison to its peers and its own historical valuation.
The stock's price-to-GF-Value ratio, based on a GuruFocus Value of $58.69, is 0.77, indicating that Hillenbrand Inc is modestly undervalued. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which factors in historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The insider's recent purchase aligns with the current valuation indicators, suggesting a potential undervaluation of Hillenbrand Inc's shares.
Investors often look for such insider buying activities as a signal that company executives believe in the company's future performance and consider the current share price attractive. Robert Vanhimbergen's recent acquisition of shares could be such a signal to the market.
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.
