Insider Sell: SVP, CFO Scott Deakin Sells 7,238 Shares of GMS Inc
Scott Deakin, SVP and CFO of GMS Inc (NYSE:GMS), has sold 7,238 shares of the company on December 27, 2023, according to a recent SEC Filing. GMS Inc is a leading North American distributor of wallboard, suspended ceilings systems, and complementary construction products. The insider's transaction has been recorded during a period when the stock is considered Modestly Overvalued according to GuruFocus Value analysis.
Over the past year, the insider has sold a total of 7,238 shares and has not made any purchases of the company's stock. This latest transaction continues a trend observed over the past year, where there have been 18 insider sells and no insider buys.
On the date of the insider's recent sell, shares of GMS Inc were trading at $84.02, giving the company a market capitalization of $3.282 billion. The price-earnings ratio of the stock stands at 11.15, which is below both the industry median of 14.915 and the company's historical median price-earnings ratio.
The stock's price of $84.02 compared to the GuruFocus Value of $67.15 results in a price-to-GF-Value ratio of 1.25, indicating that GMS Inc is Modestly Overvalued. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
Investors and analysts often monitor insider selling as it can provide insights into an insider's perspective on the valuation of the company's stock. While a single insider sell may not be indicative of the company's future performance, a trend of insider selling could signal that insiders believe the stock may be fully valued or overvalued.
It is important for investors to consider the context of the insider transactions along with the company's performance, market conditions, and other factors before making investment decisions.
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.
This article first appeared on GuruFocus.