Insider Sell: Iron Mountain Inc's President and CEO William Meaney Sells 21,014 Shares
On September 28, 2023, William Meaney, President and CEO of Iron Mountain Inc (NYSE:IRM), sold 21,014 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 386,695 shares and purchased none.
William Meaney has been at the helm of Iron Mountain Inc since 2013. Under his leadership, the company has grown significantly, expanding its services and global footprint. Iron Mountain Inc is a storage and information management company, assisting more than 225,000 organizations in approximately 50 countries on five continents with storing, protecting, and managing their information.
Insider selling is often seen as a bearish signal, as it could indicate that those with the most insight into a company's workings believe its stock is overvalued. However, insiders might sell shares for reasons unrelated to their expectations for the company's future performance, such as personal financial needs.
The insider transaction history for Iron Mountain Inc shows a clear trend of insider selling. Over the past year, there have been 35 insider sells and no insider buys.
On the day of the insider's recent sell, shares of Iron Mountain Inc were trading for $59.57 apiece, giving the stock a market cap of $17.35 billion. The price-earnings ratio is 46.09, significantly higher than the industry median of 16.5 and the companys historical median price-earnings ratio. This could suggest that the stock is overvalued.
However, the GuruFocus Value, an intrinsic value estimate developed by GuruFocus, paints a slightly different picture. The GF Value 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.
With a price of $59.57 and a GuruFocus Value of $55.94, Iron Mountain Inc has a price-to-GF-Value ratio of 1.06. This suggests that the stock is fairly valued.
In conclusion, while the insider's recent sell and the high price-earnings ratio might raise some concerns, the GuruFocus Value suggests that Iron Mountain Inc's stock is fairly valued. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.
