On September 13, 2023, John Mcgovern, a director at Kearny Financial Corp (KRNY, Financial), purchased 7,013 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
John Mcgovern is a seasoned executive with extensive experience in the financial sector. His decision to increase his stake in Kearny Financial Corp is a strong vote of confidence in the company's prospects.
Kearny Financial Corp is a US-based savings and loan holding company. The company, through its subsidiaries, is engaged in the business of attracting deposits from the general public and using such deposits, together with other funds, to originate or purchase loans for its portfolio and invest in securities.
Over the past year, John Mcgovern has purchased a total of 7,013 shares and has not sold any shares. This trend aligns with the overall insider transaction history for Kearny Financial Corp, which shows a total of 9 insider buys over the past year and only 2 insider sells over the same timeframe.
The insider's recent purchase occurred when the shares of Kearny Financial Corp were trading at $7.09 apiece, giving the stock a market cap of $484.547 million. The price-earnings ratio of the stock is 11.79, which is higher than the industry median of 8.29 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Kearny Financial Corp is significantly undervalued. With a price of $7.09 and a GuruFocus Value of $12.22, the stock has a price-to-GF-Value ratio of 0.58.
The insider's decision to buy shares at this point could be an indication that they believe the stock is undervalued and has potential for growth. This could be a positive sign for current and potential investors in Kearny Financial Corp.
However, as with any investment, it's important to do your own research and consider multiple factors before making a decision. Insider buying can be a positive sign, but it's just one piece of the puzzle when evaluating a potential investment.
