On September 6, 2023, David Darling, the Executive Vice President and Chief Operating Officer of Tidewater Inc, sold 19,500 shares of the company. This move has sparked interest among investors and analysts alike, prompting a closer look at the insider trading trends and the company's current valuation.
Tidewater Inc is a leading provider of offshore service vessels to the global energy industry. The company assists in offshore exploration, field development, and production, offering a wide range of services including towing and anchor-handling for drilling rigs and equipment, and assisting in the construction and installation of offshore structures. Tidewater's fleet is among the largest in the industry, providing services worldwide in more than 60 countries.
Over the past year, the insider has sold a total of 19,500 shares and has not made any purchases. This recent sale represents a significant portion of the insider's transactions over the past year.
The insider transaction history for Tidewater Inc shows a total of 9 insider buys and 3 insider sells over the past year. The recent sale by David Darling is notable as it represents a shift in the trend of insider transactions. The relationship between insider transactions and stock price is often closely watched by investors. In this case, the sale by the insider may raise questions about the company's current valuation and future prospects.
As of the day of the insider's recent sale, shares of Tidewater Inc were trading at $67.46, giving the company a market cap of $3.64 billion. The price-earnings ratio stands at 73.43, significantly higher than the industry median of 9.15 and the company’s historical median price-earnings ratio. This suggests that the stock may be overvalued.
The GuruFocus Value for Tidewater Inc is $21.73, resulting in a price-to-GF-Value ratio of 3.1. 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 historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale of 19,500 shares by EVP, COO David Darling, coupled with the current valuation of Tidewater Inc, may suggest that the stock is overvalued. Investors and analysts will be closely watching the company's future performance and any further insider transactions.
