Medifast Inc (NYSE:MED), a company specializing in weight loss and weight management, has reported an insider transaction involving Director Scott Schlackman. According to a recent SEC Filing, the insider sold 4,053 shares of the company on March 8, 2024.
Over the past year, the insider has engaged in multiple transactions, selling a total of 4,053 shares and purchasing 106 shares. This latest sale contributes to the overall insider activity for the company, which has seen 13 insider buys and 3 insider sells over the same timeframe.
On the date of the sale, shares of Medifast Inc were trading at $39.44, valuing the company at a market cap of $398.779 million. The price-earnings ratio of the company stands at 4.04, which is below both the industry median of 16.2 and the company's historical median price-earnings ratio.
Considering the current share price and the GuruFocus Value of $97.05, Medifast Inc has a price-to-GF-Value ratio of 0.41, indicating that the stock is Significantly Undervalued according to the GF Value metric. The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
The insider's recent transaction may attract the attention of investors who track insider behaviors as an indicator of a company's financial health and future performance. However, it is important to consider the broader context of the company's valuation and market performance when interpreting individual insider transactions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
