On September 27, 2023, Sharp Ingle, a director at Ingles Markets Inc (IMKTA, Financial), sold 3,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 38,500 shares over the past year and has not made any purchases.
Ingles Markets Inc is a leading supermarket chain in the Southeastern United States. The company operates supermarkets, fluid dairy processing and shopping centers. Its supermarkets offer food products, including grocery, meat and dairy products, produce, frozen foods and other perishables, non-food products, such as fuel centers, pharmacies, health and beauty care products and general merchandise, as well as private label items.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 17 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Ingles Markets Inc were trading at $75.41, giving the company a market cap of $1.43 billion. The price-earnings ratio was 6.27, lower than both the industry median of 17.01 and 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 business performance estimates, Ingles Markets Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.86, with a GF Value of $87.84. This suggests that the stock is currently undervalued, as shown in the following image:
The insider's decision to sell shares could be based on a variety of factors. It's important for investors to consider the broader context, including the company's valuation and the overall trend of insider transactions. While the insider's recent sell-off may raise some concerns, the fact that the stock is currently undervalued according to the GF Value could provide a potential opportunity for investors.
As always, it's crucial for investors to conduct their own research and consider multiple factors before making investment decisions.