Insider Sell: EVP, PAO Tony Oviedo Sells 20,899 Shares of Earthstone Energy Inc (ESTE)
On October 13, 2023, Tony Oviedo, the Executive Vice President and Principal Accounting Officer of Earthstone Energy Inc (NYSE:ESTE), sold 20,899 shares of the company. This move is part of a series of transactions made by the insider over the past year.
Earthstone Energy Inc is an independent oil and gas exploration and production company primarily focused on the development and production of oil, natural gas, and natural gas liquids reserves in the United States. The company's asset portfolio includes the Midland Basin of west Texas and the Eagle Ford trend of south Texas.
Over the past year, the insider has sold a total of 120,899 shares and has not made any purchases. This trend of selling by the insider is worth noting, as it may provide insights into the insider's perspective on the company's current valuation and future prospects.
The insider transaction history for Earthstone Energy Inc shows a total of 1 insider buy and 10 insider sells over the past year. This trend suggests that insiders may perceive the company's stock as overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Earthstone Energy Inc were trading at $21.28, giving the company a market cap of $2.318 billion. The price-earnings ratio of the company is 5.14, which is lower than the industry median of 9.12 and also lower than the company's historical median price-earnings ratio. This suggests that the company's shares are currently undervalued compared to its peers and its own historical valuation.
The GuruFocus Value of Earthstone Energy Inc is $21.08, resulting in a price-to-GF-Value ratio of 1.01. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell by the insider, along with the overall trend of insider sells over the past year, may suggest that insiders perceive the company's stock as overvalued. However, the company's current price-earnings ratio and its price-to-GF-Value ratio suggest that the stock is fairly valued. Investors should consider these factors, along with their own analysis and risk tolerance, when 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.
