On May 22, 2023, EVP, Chief Information & Digital Officer Puneet Bhasin sold 14,609 shares of Unum Group (UNM, Financial), 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 plans. Unum Group serves millions of customers through its Unum US, Unum UK, Colonial Life, and Starmount Life Insurance brands.
Who is Puneet Bhasin?
Puneet Bhasin serves as the Executive Vice President, Chief Information & Digital Officer of Unum Group. He is responsible for the company's technology strategy, digital transformation, and overall IT operations. With extensive experience in the insurance and financial services industries, Bhasin plays a crucial role in driving Unum Group's digital initiatives and enhancing customer experiences.
Puneet Bhasin's Insider Trading Activity
Over the past year, Puneet Bhasin has sold a total of 25,334 shares and purchased 0 shares. This recent sale of 14,609 shares represents a significant portion of his trading activity in the past year.
Insider Trends at Unum Group
The insider transaction history for Unum Group reveals that there have been 1 insider buys and 9 insider sells over the past year. This indicates a trend of more insider selling than buying, which could signal that insiders believe the stock is overvalued or that they are taking profits off the table.
Valuation of Unum Group
On the day of Puneet Bhasin's recent sale, shares of Unum Group were trading at $46.47 apiece, giving the stock a market cap of $8,982.391 million. The price-earnings ratio is 6.46, which is lower than the industry median of 13.03 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 discrepancy between the price-earnings ratio and the price-to-GF-Value ratio suggests that investors should approach the stock with caution.
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, the recent insider sell by Puneet Bhasin, along with the overall trend of more insider selling than buying at Unum Group, may raise concerns for investors. While the stock's price-earnings ratio suggests it may be undervalued compared to its peers and historical valuation, the price-to-GF-Value ratio indicates that it is significantly overvalued. Investors should carefully consider these factors and conduct further research before making any investment decisions regarding Unum Group.
