Insider Sell: EVP, Treasurer, Secretary, CFO John Zimmer Sells 10,000 Shares of Core Molding ...
On September 29, 2023, John Zimmer, the Executive Vice President, Treasurer, Secretary, and Chief Financial Officer of Core Molding Technologies Inc (CMT), sold 10,000 shares of the company. This move is part of a series of transactions Zimmer has made over the past year, which includes the sale of 50,000 shares in total and the purchase of 2,500 shares.
Core Molding Technologies Inc is a manufacturer of sheet molding compound and a molder of fiberglass reinforced plastics. The company's products are used in various markets, including medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products.
The insider's recent sell has raised questions about the company's current valuation and future prospects. To understand the implications of this move, it's essential to analyze the insider buy/sell trends and their relationship with the stock price.
The insider transaction history for Core Molding Technologies Inc shows a trend of more sells than buys over the past year. There have been 24 insider sells and only 3 insider buys. This could indicate that insiders believe the stock is overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Core Molding Technologies Inc were trading for $28.65 apiece, giving the stock a market cap of $255.081 million. The price-earnings ratio is 12.89, lower than the industry median of 21.87 but higher 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 estimates of business performance, Core Molding Technologies Inc is significantly overvalued. With a price of $28.65 and a GuruFocus Value of $15.40, the stock has a price-to-GF-Value ratio of 1.86.
In conclusion, the recent sell by the insider, along with the company's valuation and insider transaction trends, could indicate that the stock is currently overvalued. Investors should exercise caution and conduct further research before making investment decisions.
This article first appeared on GuruFocus.
