On September 12, 2023, Chief Administrative Officer Gregory Laberge sold 8,201 shares of Marcus & Millichap Inc (NYSE:MMI). This transaction is part of a series of insider sells by Laberge over the past year, totaling 10,958 shares sold and no shares purchased.
Gregory Laberge is a key executive at Marcus & Millichap Inc, a leading firm specializing in commercial real estate investment sales, financing, research, and advisory services. With over 2,000 investment sales and financing professionals located throughout the United States and Canada, the company's broad network of long-term relationships with property owners and investors gives it a significant edge in the industry.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been zero insider buys and seven insider sells at Marcus & Millichap Inc.
The above image shows the trend of insider trading activities at Marcus & Millichap Inc. The absence of insider buys and the presence of multiple insider sells could be a signal for investors to be cautious. However, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Executives sell shares for various reasons, including personal financial planning or diversification.
On the day of the insider's recent sell, shares of Marcus & Millichap Inc were trading at $32.09, giving the company a market cap of $1.214 billion. The stock's price-earnings ratio stands at 90.23, significantly higher than the industry median of 13.5 and the companys historical median price-earnings ratio.
Despite the high price-earnings ratio, the stock appears to be modestly undervalued based on its GuruFocus Value of $36.04, with a price-to-GF-Value ratio of 0.89.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts. As shown in the image above, the stock's current price is below its GF Value, indicating potential upside for investors.
In conclusion, while the insider's recent sell and the trend of insider selling at Marcus & Millichap Inc may raise eyebrows, the stock's valuation suggests it could still offer value to investors. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.