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 focused 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, and commodity marketing and distribution services. The company operates through four segments: Ethanol Production, Agribusiness and Energy Services, Food and Ingredients, and Partnership. Green Plains is committed to sustainable practices and reducing its carbon footprint while providing essential products to the global market.
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 may indicate that insiders are taking advantage of the stock's current valuation to realize gains on their investments. However, it is essential to consider the context of these transactions and the overall market conditions when evaluating their significance.
On the day of Todd Becker's recent sale, shares of Green Plains Inc were trading at $31.78 apiece, 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 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.
While the recent insider sell by Todd Becker may raise some concerns, it is essential to consider the broader context of the transaction. The stock is currently fairly valued based on its GF Value, and the overall trend of insider transactions over the past year has been mixed, with both buys and sells occurring. Investors should continue to monitor insider activity and other relevant factors to make informed decisions about Green Plains Inc's stock.
As always, it is crucial to conduct thorough research and consider multiple factors before making any investment decisions. Insider transactions can provide valuable insights into a company's prospects, but they should not be the sole basis for investment decisions.
