Insider Sell: CFO Anthony Ishaug Sells 4,000 Shares of Winmark Corp
On October 23, 2023, Anthony Ishaug, the Chief Financial Officer of Winmark Corp (NASDAQ:WINA), sold 4,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 7,500 shares and made no purchases.
Winmark Corp is a franchisor of five retail store concepts that buy, sell, trade and consign used merchandise. The company operates through two business segments: franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise. The leasing segment includes Winmark Capital Corporation and Wirth Business Credit, Inc.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities.
As shown in the insider trend image above, there have been 12 insider sells and 0 insider buys over the past year. This could be a signal that insiders are not confident about the company's future performance. However, it's also important to note that insider selling can be influenced by personal financial needs or portfolio diversification strategies, and does not necessarily reflect a negative outlook on the company.
On the day of the insider's recent sell, shares of Winmark Corp were trading at $414.44, giving the company a market cap of $1.402 billion. The price-earnings ratio was 36.15, significantly higher than the industry median of 16.27 and the companys historical median price-earnings ratio. This suggests that the stock may be overvalued.
The GF Value, an intrinsic value estimate developed by GuruFocus, further supports this assessment. With a price of $414.44 and a GuruFocus Value of $263.46, Winmark Corp has a price-to-GF-Value ratio of 1.57, indicating that the stock is significantly overvalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the recent sell by the insider, along with the company's high valuation ratios, may suggest caution for potential investors. However, it's always important to conduct thorough research and consider multiple factors before making investment decisions.
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.
