On May 23, 2023, Executive Vice President and Chief Financial Officer Scott Flaherty sold 1,295 shares of Willis Lease Finance Corp (WLFC, Financial), a leading provider of leasing services for commercial aircraft engines and related equipment. This transaction comes as part of a series of insider sells over the past year, with Flaherty having sold a total of 22,658 shares and purchased none.
Who is Scott Flaherty?
Scott Flaherty has been serving as the Executive Vice President and Chief Financial Officer of Willis Lease Finance Corp since 2015. With over 20 years of experience in the aviation industry, Flaherty has held various leadership positions in finance and operations at companies such as JetBlue Airways and Pinnacle Airlines. His expertise in the field has been instrumental in driving the financial success of Willis Lease Finance Corp.
Willis Lease Finance Corp's Business Description
Willis Lease Finance Corp is a global provider of leasing services for commercial aircraft engines and related equipment. The company's primary business is leasing engines and aircraft parts to airlines, aircraft manufacturers, and maintenance, repair, and overhaul (MRO) providers. Willis Lease Finance Corp operates in a niche market, offering flexible leasing solutions to its clients, which include sale and leaseback transactions, engine overhauls, and short-term leases for engine maintenance.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Willis Lease Finance Corp, while there have been 16 insider sells, including the recent transaction by Scott Flaherty. This trend could indicate that insiders believe the stock is fairly valued or overvalued, leading them to sell their shares.
On the day of Flaherty's recent sell, shares of Willis Lease Finance Corp were trading at $42.17, giving the stock a market cap of $253.689 million. The price-earnings ratio is 9.14, which is lower than the industry median of 16.72 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.
With a price of $42.17 and a GuruFocus Value of $42.82, Willis Lease Finance Corp has a price-to-GF-Value ratio of 0.98. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider sell by Scott Flaherty, along with the overall trend of insider sells over the past year, could signal that insiders believe the stock is fairly valued or overvalued. However, the stock's price-earnings ratio and price-to-GF-Value ratio suggest that it may be undervalued compared to its peers and historical valuation. Investors should consider these factors and conduct further research before making any investment decisions regarding Willis Lease Finance Corp.
