Insider Sell: EVP, Human Resources Renee Anderson Sells 10,000 Shares of Core Molding ...
On September 21, 2023, Renee Anderson, the Executive Vice President of Human Resources at Core Molding Technologies Inc (CMT), sold 10,000 shares of the company. This move is part of a trend for the insider, who over the past year, has sold a total of 20,000 shares and purchased none.
Core Molding Technologies Inc is a leading provider of high-quality molded products, assemblies, and innovative material technologies. The company specializes in large-format moldings and offers a wide range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics, and bulk molding compounds, as well as LRTM, VARTM, and infusion processes.
The insider transaction history for Core Molding Technologies Inc shows a trend of more sells than buys over the past year. There have been 3 insider buys in total, compared to 20 insider sells. This could indicate a bearish sentiment among the insiders of the company.
On the day of the insider's recent sell, shares of Core Molding Technologies Inc were trading for $26.57 apiece, giving the stock a market cap of $226.949 million. The price-earnings ratio is 11.47, which is lower than the industry median of 22.21 and lower than the companys historical median price-earnings ratio. This suggests that the stock is undervalued when compared to its peers and its own historical data.
However, when we look at the price-to-GF-Value ratio, which stands at 1.73, we see a different picture. With a price of $26.57 and a GuruFocus Value of $15.37, Core Molding Technologies Inc is significantly overvalued based on its GF Value.
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 companys past returns and growth, and future estimates of business performance from Morningstar analysts.
The recent sell by Renee Anderson, coupled with the stock's overvaluation based on its GF Value, could be a signal for investors to exercise caution. However, it's important to remember that insider transactions are just one piece of the puzzle when it comes to making investment decisions. Investors should also consider other factors such as the company's fundamentals, industry trends, and macroeconomic indicators.
This article first appeared on GuruFocus.
