Insider Sell: CEO Jesse Singh Sells 60,000 Shares of The AZEK Co Inc
On September 7, 2023, Jesse Singh, the CEO and President of The AZEK Co Inc (NYSE:AZEK), sold 60,000 shares of the company. This move is part of a trend for the insider, who over the past year, has sold a total of 120,000 shares and purchased none.
Jesse Singh has been with The AZEK Co Inc for several years, leading the company through various stages of growth and development. Under his leadership, the company has expanded its product offerings and market reach, contributing to its current market cap of $4.87 billion.
The AZEK Co Inc is a leading manufacturer of beautiful, low-maintenance residential and commercial building products, and is committed to innovation, sustainability, and research & development. The company's products are marketed under several brands, including AZEK, TimberTech, and Versatex, among others.
The insider's recent sell has raised some eyebrows in the investment community. Over the past year, there have been no insider buys for The AZEK Co Inc, while there have been 12 insider sells. This could potentially signal a lack of confidence in the company's future performance.
The above image shows the trend of insider transactions for The AZEK Co Inc. The lack of insider buys and the consistent insider sells could be a cause for concern for potential investors.
On the day of the insider's recent sell, shares of The AZEK Co Inc were trading for $33.09 apiece. This gives the stock a price-earnings ratio of 232.79, which is significantly higher than the industry median of 14.38 and the companys historical median price-earnings ratio. This could indicate that the stock is overvalued.
However, with a price of $33.09 and a GuruFocus Value of $34.81, The AZEK Co Inc has a price-to-GF-Value ratio of 0.95. This suggests that the stock is fairly valued based on its GF Value.
The above image shows the GF Value of The AZEK Co Inc. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell and the lack of insider buys over the past year could be a cause for concern, the stock appears to be fairly valued based on its GF Value. Investors should keep a close eye on the company's performance and any future insider transactions.
This article first appeared on GuruFocus.
