Vice President Gordon Wichman Sells 6,000 Shares of AAON Inc
On September 8, 2023, Gordon Wichman, Vice President of AAON Inc (NASDAQ:AAON), sold 6,000 shares of the company. This move comes amidst a year where the insider has sold a total of 14,220 shares and purchased none.
AAON Inc is a leading manufacturer of heating and cooling products. The company's product line includes rooftop units, chillers, air handling units, and heat recovery units. AAON Inc is known for its innovation and commitment to high-quality, energy-efficient HVAC products.
The insider's recent sell-off raises 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 AAON Inc shows a trend of more sells than buys over the past year. There have been 24 insider sells and only 1 insider buy. This could indicate that insiders believe the stock is overvalued or that they expect the stock price to decrease in the future.
On the day of the insider's recent sell, AAON Inc's shares were trading at $66.11, giving the company a market cap of $5.28 billion. The price-earnings ratio stands at 35.82, higher than the industry median of 14.42 but lower than the companys historical median price-earnings ratio.
Despite the insider's sell-off, AAON Inc's stock appears to be modestly undervalued based on its GuruFocus Value. The price-to-GF-Value ratio is 0.83, with a GF Value of $79.90 compared to the current price of $66.11.
The GF Value is an intrinsic value estimate developed by GuruFocus. It 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.
In conclusion, while the insider's recent sell-off may raise some concerns, the stock's current valuation suggests that AAON Inc is modestly undervalued. Investors should keep a close eye on the company's performance and any future insider transactions to make informed investment decisions.
This article first appeared on GuruFocus.
