Insider Sell: Paul Linton Sells 1,080 Shares of FTI Consulting Inc
On November 1, 2023, Chief Strategy/Transformation Officer Paul Linton sold 1,080 shares of FTI Consulting Inc (NYSE:FCN). This move is part of a series of transactions made by the insider over the past year, which have seen a total of 6,000 shares sold and no shares purchased.
Paul Linton is a key figure at FTI Consulting Inc, a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 6,200 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 20 insider sells and no insider buys. This trend is illustrated in the following chart:
On the day of the insider's recent sell, shares of FTI Consulting Inc were trading for $212.5 apiece, giving the stock a market cap of $7.58 billion. This is significantly higher than the company's GuruFocus Value of $188.64, suggesting that the stock is modestly overvalued.
The price-earnings ratio of FTI Consulting Inc is 31.59, which is higher than both the industry median of 16.18 and the company's historical median price-earnings ratio. This further supports the notion that the stock is currently overvalued.
The GuruFocus Value is an intrinsic value estimate that takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts. The following image provides a visual representation of the GF Value:
In conclusion, the insider's recent sell-off, coupled with the stock's high price-earnings ratio and modest overvaluation according to the GuruFocus Value, suggests that now may not be the best time to invest in FTI Consulting Inc. However, as always, potential investors should conduct their own research and consider their personal financial situation before making any 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.
