On June 30, 2023, Matthew Cox, Chairman & CEO of Matson Inc (MATX, Financial), sold 10,000 shares of the company. This move is part of a series of insider transactions that have taken place over the past year, with Cox selling a total of 77,063 shares and making no purchases.
Matthew Cox has been with Matson Inc, a leading provider of ocean transportation and logistics services, for over a decade. Under his leadership, the company has grown significantly, expanding its operations across the Pacific and establishing a strong presence in the industry.
Matson Inc is a renowned name in the shipping industry, offering a wide range of services including ocean transportation, domestic and international rail intermodal service, long haul and regional highway brokerage, supply chain services, and less-than-truck-load transportation services, among others. The company's primary business is ocean transportation between various ports in the Pacific.
The recent sale by Cox has raised eyebrows among investors and market watchers, given the significant number of shares sold. This move comes amidst a trend of insider selling at Matson Inc, with 25 insider sells recorded over the past year compared to just 2 insider buys.
The above image shows the trend of insider transactions at Matson Inc. The high number of sells compared to buys could be a signal for investors to tread carefully. However, it's important to note that insider selling doesn't necessarily indicate a lack of confidence in the company. Executives sell shares for a variety of reasons, including personal financial planning and diversification.
On the day of Cox's recent sale, Matson Inc's shares were trading at $77.43, giving the company a market cap of $2.79 billion. The stock's price-earnings ratio stands at 4.00, significantly lower than the industry median of 13.24 and the company's historical median price-earnings ratio. This suggests that the stock is undervalued.
The GF Value, an intrinsic value estimate developed by GuruFocus, further supports this assessment. With a price of $77.43 and a GuruFocus Value of $106.53, Matson Inc has a price-to-GF-Value ratio of 0.73, indicating that the stock is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, while the recent insider sell by Matthew Cox may raise questions, the valuation metrics suggest that Matson Inc's stock is undervalued. Investors should consider these factors along with the company's performance and growth prospects when making investment decisions.
