On May 22, 2023, Executive Vice President and Chief Underwriting Officer of AMERISAFE Inc (AMSF, Financial), Andrew Mccray, sold 978 shares of the company's stock. This insider sell comes amidst a year where there have been no insider buys and only one insider sell for the company.
Who is Andrew Mccray?
Andrew Mccray is the Executive Vice President and Chief Underwriting Officer of AMERISAFE Inc. He has been with the company since 2015 and has played a significant role in the company's growth and success. With his extensive experience in the insurance industry, Mccray has been instrumental in shaping the company's underwriting strategies and risk management policies.
About AMERISAFE Inc
AMERISAFE Inc is a specialty provider of workers' compensation insurance, focusing on small to mid-sized employers engaged in hazardous industries, such as construction, trucking, agriculture, and manufacturing. The company is known for its expertise in underwriting workers' compensation policies for high-risk industries and has built a reputation for its exceptional customer service and claims management. AMERISAFE Inc is headquartered in DeRidder, Louisiana, and operates across the United States.
Insider Buy/Sell Analysis and Stock Price Relationship
Over the past year, Andrew Mccray has sold a total of 978 shares and has not purchased any shares. This is the only insider sell transaction for AMERISAFE Inc in the past year, with no insider buys recorded during the same period. This could indicate that insiders are not particularly bullish on the company's prospects, or it could simply be a personal financial decision by Mccray.
The relationship between insider transactions and stock price can provide valuable insights into the company's future performance. In the case of AMERISAFE Inc, the stock price was $54.42 on the day of Mccray's recent sell, giving the company a market cap of $1,004.501 million. The price-earnings ratio is 18.15, which is higher than the industry median of 13.03 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical valuation.
With a price of $54.42 and a GuruFocus Value of $50.99, AMERISAFE Inc has a price-to-GF-Value ratio of 1.07. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider sell by Andrew Mccray, EVP-CUO of AMERISAFE Inc, may raise some questions about the company's future prospects. However, it is essential to consider the overall context of the transaction and the company's valuation. With a price-to-GF-Value ratio of 1.07, the stock is fairly valued, and the price-earnings ratio is higher than the industry median and the company's historical median. While there have been no insider buys in the past year, it is crucial to monitor the company's performance and any future insider transactions to gain a better understanding of the company's prospects and potential investment opportunities.
