On May 25, 2023, Kevin Clark, Chairman and CEO of Aptiv PLC (APTV, Financial), sold 13,330 shares of the company's stock. This recent transaction is part of a series of insider sales by Clark over the past year, during which he has sold a total of 146,670 shares and purchased none.
Who is Kevin Clark?
Kevin Clark has been the Chairman and CEO of Aptiv PLC since March 2015. He has been with the company for over a decade, holding various leadership positions, including Chief Financial Officer and Senior Vice President. Under his leadership, Aptiv has become a global technology leader in the automotive industry, focusing on developing safer, greener, and more connected solutions for a diverse range of customers.
About Aptiv PLC
Aptiv PLC is a global technology company that specializes in designing and manufacturing vehicle components and providing electrical, electronic, and safety technology solutions to the automotive sector. The company operates through two segments: Signal and Power Solutions, which provides components and systems for electrical power and signal distribution; and Advanced Safety and User Experience, which offers advanced safety, connectivity, and security solutions. Aptiv's innovative products and services enable automakers to meet the increasing demand for safer, more environmentally friendly, and connected vehicles.
Insider Trends
The insider transaction history for Aptiv PLC reveals that there have been no insider buys over the past year. In contrast, there have been 15 insider sells during the same period. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains on their investments.
Valuation
On the day of Kevin Clark's recent sale, shares of Aptiv PLC were trading at $90.19 apiece, giving the company a market capitalization of $24,921.754 million. The stock's price-earnings ratio is 41.50, which is higher than the industry median of 16.46 and higher than the company's historical median price-earnings ratio. This elevated valuation may have contributed to Clark's decision to sell a portion of his holdings.
With a price of $90.19 and a GuruFocus Value of $129.16, Aptiv PLC has a price-to-GF-Value ratio of 0.7. This indicates that the stock is modestly undervalued based on its GF Value. Investors should consider this valuation metric when evaluating the stock's potential for future gains.
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 Aptiv PLC's Chairman and CEO Kevin Clark may be a result of the stock's current valuation and his desire to realize gains on his investment. While there have been no insider buys over the past year, the stock's modest undervaluation based on its GF Value suggests that there may still be potential for future gains. Investors should keep an eye on insider transactions and the company's performance to make informed decisions about their investments in Aptiv PLC.
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