On May 22, 2023, Puneet Bhasin, EVP, Chief Information & Digital Officer of Unum Group (UNM, Financial), sold 14,609 shares of the company. This insider sell comes amidst a year of insider trading activity for Unum Group, with a total of 25,334 shares sold by Puneet Bhasin and no shares purchased.
Who is Puneet Bhasin of Unum Group?
Puneet Bhasin serves as the Executive Vice President, Chief Information & Digital Officer of Unum Group. In this role, he is responsible for overseeing the company's technology and digital strategy, ensuring that Unum Group stays at the forefront of innovation and continues to provide value to its customers.
Unum Group's Business Description
Unum Group is a leading provider of financial protection benefits in the United States and the United Kingdom. The company offers a wide range of insurance products, including disability, life, accident, critical illness, dental, and vision coverage. Unum Group's primary focus is on providing workplace benefits to help protect employees and their families from financial hardships resulting from illness, injury, or death.
Insider Trends
Over the past year, Unum Group has seen a total of 1 insider buy and 9 insider sells. This indicates a trend of insider selling, which could be a signal that insiders believe the stock is overvalued or that they are taking profits after a period of growth.
Valuation
On the day of Puneet Bhasin's recent sell, shares of Unum Group were trading at $46.47, giving the stock a market cap of $8,846.413 million.
The price-earnings ratio for Unum Group is 6.36, which is lower than the industry median of 12.98 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 $46.47 and a GuruFocus Value of $26.46, Unum Group has a price-to-GF-Value ratio of 1.76. This indicates that the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on 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.
In conclusion, while the price-earnings ratio suggests that Unum Group may be undervalued compared to its industry peers and historical valuation, the price-to-GF-Value ratio indicates that the stock is significantly overvalued. This mixed valuation, combined with the recent insider selling activity, suggests that investors should approach Unum Group with caution and conduct further research before making any investment decisions.
