On May 24, 2023, President and CEO Todd Becker sold 42,000 shares of Green Plains Inc (GPRE, Financial) at a price of $31.78 per share. This transaction comes amidst a series of insider transactions over the past year, with Becker having sold a total of 97,000 shares and purchased none.
Who is Todd Becker?
Todd Becker is the President and CEO of Green Plains Inc, a leading biorefining company that focuses on the production of ethanol, high-protein animal feed, and other value-added products. Becker has been with the company since 2009 and has played a significant role in its growth and expansion. Under his leadership, Green Plains has become one of the largest ethanol producers in the United States.
Green Plains Inc's Business Description
Green Plains Inc is a diversified commodity-processing business with operations primarily related to ethanol production, corn oil production, grain handling, and storage. The company operates through four segments: Ethanol Production, Agribusiness and Energy Services, Food and Ingredients, and Partnership. Green Plains' mission is to be a leading producer of high-quality, low-carbon biofuels and high-protein animal feed, contributing to a more sustainable future.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, Green Plains Inc has seen a total of 3 insider buys and 9 insider sells. This trend suggests that insiders may be taking advantage of the stock's recent performance to cash in on their investments. However, it is essential to consider the context of these transactions and the potential impact on the stock price.
Todd Becker's recent sale of 42,000 shares comes after a year of selling a total of 97,000 shares and purchasing none. This could indicate that Becker believes the stock is fairly valued or overvalued at its current price. However, it is also possible that Becker is merely diversifying his portfolio or using the proceeds for personal reasons.
On the day of Becker's recent sale, shares of Green Plains Inc were trading at $31.78, giving the stock a market cap of $1,810.379 million. With a GuruFocus Value of $32.05, the stock has a price-to-GF-Value ratio of 0.99, indicating that it is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using 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.
While insider transactions can provide valuable insights into a company's prospects, it is essential to consider the broader context and other factors that may influence the stock price. In the case of Green Plains Inc, the stock appears to be fairly valued based on its GF Value, and the recent insider sell by Todd Becker may not necessarily signal a bearish outlook for the company.
Investors should continue to monitor insider transactions, company performance, and industry trends to make informed decisions about their investments in Green Plains Inc.
