On May 22, 2023, Philip Smith, CEO of a subsidiary entity of StoneX Group Inc (SNEX, Financial), sold 3,500 shares of the company. This move comes amidst a year of insider trading activity for StoneX Group Inc, with a total of 26 insider sells and 1 insider buy over the past year.
Who is Philip Smith?
Philip Smith is the CEO of a subsidiary entity of StoneX Group Inc. He has been involved with the company for several years and has played a significant role in its growth and development. Over the past year, Smith has sold a total of 11,037 shares and has not purchased any shares.
About StoneX Group Inc
StoneX Group Inc is a global financial services organization that provides execution, clearing, and advisory services in commodities, securities, foreign exchange, and other markets. The company serves clients across various industries, including commercial, institutional, and individual customers. StoneX Group Inc aims to empower clients with access to global markets, insights, and expertise to help them achieve their financial goals.
Insider Trading Analysis
The insider transaction history for StoneX Group Inc over the past year reveals a trend of more insider sells than buys. With 26 insider sells and only 1 insider buy, this could indicate that insiders may have concerns about the company's future prospects or believe that the stock is overvalued. However, it is essential to consider other factors, such as the company's financial performance and market conditions, before drawing any conclusions.
Stock Price Relationship
On the day of Philip Smith's recent sale, shares of StoneX Group Inc were trading at $84.77 apiece, giving the stock a market cap of $1,698.096 million. The price-earnings ratio of 7.85 is lower than the industry median of 17.34 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.
With a price of $84.77 and a GuruFocus Value of $92.30, StoneX Group Inc has a price-to-GF-Value ratio of 0.92. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent sale of 3,500 shares by Philip Smith, CEO of a subsidiary entity of StoneX Group Inc, adds to the trend of more insider sells than buys for the company over the past year. While this may raise concerns for some investors, it is crucial to consider the stock's current valuation and other factors before making any investment decisions. With a price-earnings ratio lower than the industry median and a price-to-GF-Value ratio indicating modest undervaluation, StoneX Group Inc may still present an attractive investment opportunity for those who believe in the company's long-term prospects.
