On May 18, 2023, Michael Potter, the Chief Financial Officer (CFO) of Corsair Gaming Inc (CRSR, Financial), sold 10,000 shares of the company's stock. This recent transaction is part of a series of insider trades that have taken place over the past year, with Michael Potter selling a total of 17,673 shares and purchasing none.
Who is Michael Potter of Corsair Gaming Inc?
Michael Potter serves as the Chief Financial Officer of Corsair Gaming Inc, a leading global provider and innovator of high-performance gear for gamers and content creators. Potter has been with the company since 2017 and has played a significant role in the company's financial management and growth.
Corsair Gaming Inc's Business Description
Corsair Gaming Inc is a leading global provider of high-performance gear for gamers and content creators. The company designs and sells a wide range of products, including gaming peripherals, components, streaming gear, and more. Corsair's products are designed to meet the demanding needs of professional gamers, esports athletes, and content creators, offering them the competitive edge they need to succeed in their respective fields.
Insider Trends
The insider transaction history for Corsair Gaming Inc reveals that there have been 3 insider buys in total over the past year. In contrast, there have been 5 insider sells during the same period. This data suggests that insiders have been more inclined to sell their shares rather than buy new ones.
Valuation
On the day of Michael Potter's recent sale, shares of Corsair Gaming Inc were trading at $20 apiece, giving the stock a market cap of $2,033.039 million.
With a price of $20 and a GuruFocus Value of $16.82, Corsair Gaming Inc has a price-to-GF-Value ratio of 1.19. This indicates that the stock is modestly 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.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Insider trading activity can provide valuable insights into a company's prospects and the sentiment of its executives. In the case of Corsair Gaming Inc, the recent trend of insider sells, including Michael Potter's sale of 10,000 shares, may raise questions about the company's future performance and stock price.
However, it is essential to consider other factors, such as the company's financial performance, market conditions, and industry trends, before drawing any conclusions. While the stock is currently trading at a modest premium to its GF Value, this does not necessarily mean that it is overpriced or that insiders are losing confidence in the company's prospects.
Investors should carefully analyze the available data, including insider trading activity, financial performance, and market trends, to make informed decisions about Corsair Gaming Inc's stock. It is also crucial to consider the individual motivations of insiders when they buy or sell shares, as these transactions may not always reflect their views on the company's overall prospects.
