On May 23, 2023, Stuart Bradie, President and CEO of KBR Inc (KBR, Financial), sold 900 shares of the company's stock. This move comes amidst a year of insider selling activity for KBR Inc, with no insider buys recorded over the past year. In this article, we will take a closer look at Stuart Bradie's background, KBR Inc's business, and the relationship between insider transactions and stock price.
Who is Stuart Bradie?
Stuart Bradie has been the President and CEO of KBR Inc since June 2014. With over 25 years of experience in the engineering and construction industry, Bradie has held various leadership positions in companies across the globe. Under his leadership, KBR Inc has continued to grow and expand its business operations.
KBR Inc's Business Description
KBR Inc is a global provider of differentiated professional services and technologies across the asset and program life cycle within the government services and hydrocarbons industries. The company operates through three business segments: Government Solutions, Technology Solutions, and Energy Solutions. KBR Inc serves customers in more than 75 countries, providing a wide range of services, including consulting, engineering, construction, operations, and maintenance.
Insider Transactions and Stock Price Relationship
Over the past year, Stuart Bradie has sold a total of 3,287 shares and purchased 0 shares. The insider transaction history for KBR Inc shows that there have been 0 insider buys and 8 insider sells over the past year. This trend of insider selling 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 Stuart Bradie's recent sell, shares of KBR Inc were trading at $59.2 apiece, giving the stock a market cap of $7,922.098 million. The price-earnings ratio is 25.60, which is higher than the industry median of 13.8 and higher than the company's historical median price-earnings ratio. This suggests that KBR Inc's stock may be overvalued compared to its peers and its historical valuation.
With a price of $59.2 and a GuruFocus Value of $41.57, KBR Inc has a price-to-GF-Value ratio of 1.42. This means 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, the recent insider sell by KBR Inc's President and CEO Stuart Bradie, along with the overall trend of insider selling over the past year, could be a signal that the stock is overvalued. Investors should carefully consider these factors and conduct further research before making any investment decisions regarding KBR Inc.
