On May 22, 2023, Ademir Sarcevic, Vice President, CFO, and Treasurer of Standex International Corp (SXI, Financial), sold 755 shares of the company's stock. This insider sell comes amidst a year of insider transactions that have seen Sarcevic sell a total of 5,155 shares and make no purchases.
Who is Ademir Sarcevic?
Ademir Sarcevic is the Vice President, Chief Financial Officer, and Treasurer of Standex International Corp. He has been with the company since 2019 and has played a crucial role in the company's financial management and strategic planning. Sarcevic's experience in the industry and his leadership have contributed to the company's growth and success.
Standex International Corp's Business Description
Standex International Corp is a diversified manufacturing company that operates in five segments: Electronics, Engraving, Engineering Technologies, Hydraulics, and Food Service Equipment. The company serves a wide range of industries, including automotive, aerospace, consumer goods, and industrial markets. Standex International Corp is known for its innovative products and solutions, as well as its commitment to quality and customer satisfaction.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Standex International Corp, while there have been 16 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of a high stock price to cash in on their investments.
On the day of Ademir Sarcevic's recent sell, shares of Standex International Corp were trading at $140.45, giving the stock a market cap of $1,642.569 million. The price-earnings ratio is 12.44, which is lower than the industry median of 22.16 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its historical valuation.
However, with a price of $140.45 and a GuruFocus Value of $108.66, Standex International Corp has a price-to-GF-Value ratio of 1.29. This means the stock is modestly overvalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
Ademir Sarcevic's recent sale of 755 shares of Standex International Corp may raise questions about the company's valuation and future prospects. While the stock's price-earnings ratio is lower than the industry median and its historical median, the price-to-GF-Value ratio suggests that the stock is modestly overvalued. Investors should consider these factors, as well as the overall trend of insider sells over the past year, when making decisions about Standex International Corp's stock.
It is essential to keep in mind that insider transactions are just one piece of the puzzle when evaluating a company's stock. Investors should also consider the company's financial performance, industry trends, and overall market conditions before making any investment decisions.
