On May 22, 2023, Gregg Felton, Co-Founder, Co-CEO, Co-President, and 10% Owner of Altus Power Inc (AMPS, Financial), purchased 75,000 shares of the company. This move is significant as it indicates a strong vote of confidence in the company's future prospects by a key insider.
Who is Gregg Felton?
Gregg Felton is a Co-Founder, Co-CEO, and Co-President of Altus Power Inc. With extensive experience in the financial industry, Felton has held various leadership positions in investment management firms. His expertise in finance and investment strategies has been instrumental in the growth and success of Altus Power Inc.
About Altus Power Inc
Altus Power Inc is a leading clean electrification company that focuses on developing, owning, and operating renewable energy assets. The company's primary objective is to provide clean energy solutions to commercial, industrial, and municipal clients across the United States. Altus Power Inc is committed to reducing greenhouse gas emissions and promoting a sustainable future through the deployment of solar, storage, and other clean energy technologies.
Insider Buying Analysis
Over the past year, Gregg Felton has purchased a total of 75,000 shares and sold 0 shares. This indicates a strong belief in the company's future growth and performance. The insider transaction history for Altus Power Inc shows a total of 1 insider buy over the past year, while there have been 4 insider sells during the same period. This suggests that insiders are generally more bullish on the company's prospects.
Stock Price and Valuation
On the day of Gregg Felton's recent purchase, shares of Altus Power Inc were trading at $4.43 apiece, giving the stock a market capitalization of $788.171 million. The price-earnings ratio is 14.47, which is lower than the industry median of 15.79 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 trading levels.
The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account the following three factors:
- 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.
- Future estimates of business performance from Morningstar analysts.
Based on these factors, the GF Value suggests that Altus Power Inc's stock may be undervalued, providing a potential opportunity for investors. Gregg Felton's recent purchase of 75,000 shares further supports this view, as it indicates that a key insider believes in the company's future growth and performance.
Conclusion
Insider buying can be a strong indicator of a company's future prospects, and Gregg Felton's recent purchase of 75,000 shares of Altus Power Inc is no exception. With a lower price-earnings ratio compared to the industry median and the company's historical levels, as well as a favorable GF Value, Altus Power Inc's stock appears to be undervalued. Investors should consider this insider buying activity and the company's valuation metrics when evaluating investment opportunities in the renewable energy sector.
