Insider Sell: CFO, EVP & Treasurer William Peters Sells 60,743 Shares of Amphastar ...
On September 6, 2023, William Peters, the CFO, EVP & Treasurer of Amphastar Pharmaceuticals Inc (NASDAQ:AMPH), sold 60,743 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which Peters has sold a total of 115,551 shares and made no purchases.
William Peters has been with Amphastar Pharmaceuticals Inc for several years, serving in various executive roles. His deep understanding of the company's financial operations and strategic direction makes his stock transactions particularly noteworthy for investors.
Amphastar Pharmaceuticals Inc is a biopharmaceutical company that focuses on the development, manufacture, and marketing of generic and proprietary injectable, inhalation, and intranasal products. The company also includes insulin active pharmaceutical ingredient products. Its operations are primarily in the United States, but it has a global reach.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 27 insider sells and no insider buys. This trend is illustrated in the following image:
The relationship between insider transactions and the stock price is complex. Generally, insider selling can be a bearish signal, as it may indicate that those with the most information about the company believe its stock is overvalued. However, insiders may also sell shares for personal reasons unrelated to the company's performance.
On the day of the insider's recent sell, shares of Amphastar Pharmaceuticals Inc were trading at $51.75, giving the company a market cap of $2.443 billion. The price-earnings ratio was 25.65, higher than the industry median of 22.13 but lower than the companys historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Amphastar Pharmaceuticals Inc is significantly overvalued. The stock's price-to-GF-Value ratio is 1.61, with a GF Value of $32.11 and a current price of $51.75. The GF Value is illustrated in the following image:
In conclusion, the recent insider sell by William Peters, along with the overall trend of insider sells at Amphastar Pharmaceuticals Inc, may be a signal for investors to exercise caution. However, as always, it's essential to consider the broader market context and other factors when making investment decisions.
This article first appeared on GuruFocus.
