On May 23, 2023, William Hutton, EVP, General Counsel & Secy of Reinsurance Group of America Inc (RGA, Financial), sold 345 shares of the company's stock. This recent transaction has caught the attention of investors and market analysts, as it may provide insights into the company's future prospects and the insider's perspective on its current valuation.
Who is William Hutton?
William Hutton serves as the Executive Vice President, General Counsel, and Secretary of Reinsurance Group of America Inc. In his role, Hutton is responsible for overseeing the company's legal and compliance matters, as well as providing strategic guidance to the executive team and board of directors.
About Reinsurance Group of America Inc
Reinsurance Group of America Inc is a leading global provider of life reinsurance and financial solutions. The company offers a diverse range of products and services, including individual life reinsurance, group reinsurance, asset-intensive products, and financial reinsurance. With operations in over 40 countries, RGA serves clients worldwide, helping them manage risk and capitalize on growth opportunities.
Insider Trading Analysis
Over the past year, William Hutton has sold a total of 6,488 shares and purchased 0 shares. This recent sale of 345 shares is part of a broader trend of insider selling at Reinsurance Group of America Inc. In the past year, there have been 0 insider buys and 5 insider sells in total.
Insider trading activity can provide valuable insights into a company's prospects and the insiders' perspective on its valuation. In the case of Reinsurance Group of America Inc, the consistent selling by insiders may raise concerns about the company's future performance or its current valuation.
Stock Price and Valuation
On the day of William Hutton's recent sale, shares of Reinsurance Group of America Inc were trading at $150.11 apiece, giving the stock a market cap of $9,562.110 million. The price-earnings ratio is 9.50, which is lower than the industry median of 12.96 and lower than the company's historical median price-earnings ratio.
With a price of $150.11 and a GuruFocus Value of $125.82, Reinsurance Group of America Inc has a price-to-GF-Value ratio of 1.19. This means the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by William Hutton, along with the broader trend of insider selling at Reinsurance Group of America Inc, may raise concerns for investors. The stock's current valuation, as indicated by its price-to-GF-Value ratio, suggests that it is modestly overvalued. Investors should keep a close eye on the company's performance and any further insider trading activity to make informed decisions about their investments in Reinsurance Group of America Inc.
