Insider Sell: Winmark Corp COO Renae Gaudette Sells 665 Shares
On October 19, 2023, Renae Gaudette, the Chief Operating Officer of Winmark Corp (NASDAQ:WINA), sold 665 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 665 shares and purchased none.
Renae Gaudette is a seasoned executive with a wealth of experience in the retail industry. As the COO of Winmark Corp, she plays a pivotal role in the company's operations, ensuring that the company's strategic goals are met while overseeing the day-to-day operations.
Winmark Corp is a franchisor of five retail store concepts that buy, sell, trade, and consign used merchandise. The company operates through two business segments: franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade, and consign merchandise. The leasing segment includes Winmark's middle-market equipment leasing business, Winmark Capital Corporation, and its small-ticket financing business, Wirth Business Credit, Inc.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. The stock was trading at $401.33 per share on the day of the insider's recent sell, giving the company a market cap of $1.461 billion.
The company's price-earnings ratio stands at 37.68, significantly higher than the industry median of 16.59 and above the company's historical median price-earnings ratio. This suggests that the stock may be overvalued.
The GuruFocus Value, an intrinsic value estimate developed by GuruFocus, stands at $263.23. With a price-to-GF-Value ratio of 1.52, the stock appears to be significantly overvalued.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
The insider transaction history for Winmark Corp shows a trend of more sells than buys over the past year. There have been 11 insider sells and no insider buys over the same timeframe. This could be a signal that insiders believe the stock is overvalued and are taking the opportunity to cash in on their holdings.
In conclusion, the recent sell-off by the insider, coupled with the company's high price-earnings ratio and price-to-GF-Value ratio, suggests that the stock may be overvalued. Investors should exercise caution and conduct further research before 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.
