On July 28, 2026, Erie Indemnity Co ERIE shares rose 6.2% to a current price of $242.43. The stock has traded within a 52-week range of $204.63 to $380.67, reflecting significant volatility over the past year. This recent uptick is noteworthy given the stock's performance, which has seen a year-to-date decline of 14.0% and a 30.0% drop over the last year.
- GF Valueâ„¢ verdict: The current price of $242.43 is 29.4% below the GF Valueâ„¢ estimate of $343.39, indicating the stock may be undervalued.
- GF Scoreâ„¢: With a score of 63/100, ERIE is rated as above average, suggesting a relatively strong financial position compared to its peers.
- Most notable signal: Insider activity shows that insiders bought $1.4 million worth of shares while only selling $0.1 million in the last three months, indicating confidence in the company's prospects.
Is ERIE Overvalued or Undervalued?
Based on the current price of $242.43, Erie Indemnity Co appears to be undervalued when compared to the GF Valueâ„¢ estimate of $343.39. This presents a margin of safety of 29.4%, suggesting a potential opportunity for investors. GF Valueâ„¢ is GuruFocus' proprietary intrinsic-value estimate that combines historical trading multiples, the company's past business growth, and future performance projections to arrive at a fair valuation. The label of "significantly undervalued" indicates that the market may not fully recognize the company's intrinsic worth at this time.
Investors may find this undervaluation appealing, but it is essential to consider the broader market conditions and the company's recent performance trends. The significant drop in stock price over the past year could signal underlying issues that warrant further investigation before making any conclusions about the stock's future prospects.
How Does ERIE's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 22.2x | 35.7x |
| Forward P/E | 19.4x | N/A |
Currently, ERIE's trailing P/E of 22.2x is significantly below its 5-year median P/E of 35.7x, indicating that the stock is trading at a lower valuation compared to its historical averages. This analysis aligns with the GF Valueâ„¢ verdict, suggesting that the stock is undervalued. The forward P/E of 19.4x further reinforces the notion that the stock may present an attractive valuation opportunity as it indicates expected earnings growth relative to its price.
What Does ERIE's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures various aspects of a company's financial health and growth potential. Erie Indemnity Co's score of 63/100 reflects a solid financial position, with notable strengths in financial stability and profitability. However, the company has room for improvement regarding its growth and valuation ranks.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 63 |
| Financial Strength | 9/10 |
| Profitability | 7/10 |
| Growth | 4/10 |
| Valuation | 4/10 |
| Momentum | 1/10 |
The high financial strength score of 9/10 indicates that ERIE is in a robust position to withstand market fluctuations, while the profitability rank of 7/10 underscores its ability to generate profits. However, the lower growth and valuation ranks highlight potential concerns regarding future expansion and market perception. The momentum rank of 1/10 is particularly concerning, as it suggests recent performance has not been favorable, which may impact investor sentiment.
What Are Gurus and Insiders Doing with ERIE?
Currently, six gurus hold shares of Erie Indemnity Co, with two increasing their positions and five trimming their holdings in recent quarters. This activity indicates a mixed sentiment among institutional investors, with some expressing confidence in the stock's future while others appear to be cautious. The insider activity, where insiders purchased $1.4 million worth of shares against only $0.1 million in sales, further suggests that those closest to the company believe in its value proposition and future potential.
This pattern of insider buying can be a positive signal for potential investors, as it often reflects confidence in the company’s outlook. Nevertheless, the mixed guru activity should be carefully considered alongside other performance indicators before making any investment decisions.
What This Means for Investors
In conclusion, Erie Indemnity Co ERIE appears to be undervalued based on the GF Valueâ„¢ estimate, providing a potential opportunity for investors looking for value stocks. The company's strong financial health is underscored by its high GF Scoreâ„¢ and insider buying activity, which suggests confidence in its future performance. However, the mixed signals from gurus and recent performance trends should prompt due diligence before making any investment decisions. For more detailed analysis, visit the Erie Indemnity Co (ERIE) stock page.
Frequently Asked Questions
What is ERIE's GF Scoreâ„¢?
ERIE has a GF Scoreâ„¢ of 63/100, indicating an above-average financial position compared to its industry peers.
Is ERIE overvalued or undervalued?
ERIE is currently undervalued according to the GF Valueâ„¢ estimate, which suggests that the stock's price is significantly below its intrinsic value.
What is ERIE's P/E ratio?
ERIE's P/E ratio is 22.2x, which is considerably lower than its 5-year median P/E of 35.7x, suggesting that the stock is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
