On June 1, 2023, CEO and 10% Owner Chenlong Tan purchased 20,000 shares of iPower Inc (IPW, Financial), a leading online retailer of hydroponic equipment and supplies. This move demonstrates Tan's confidence in the company's future prospects and adds to his already significant ownership stake in iPower Inc.
Who is Chenlong Tan of iPower Inc?
Chenlong Tan is the CEO and a 10% owner of iPower Inc. He has been instrumental in the company's growth and success since its inception. With his extensive experience in the hydroponics industry, Tan has helped iPower Inc become a leading online retailer of hydroponic equipment and supplies, catering to both hobbyists and commercial growers alike.
iPower Inc's Business Description
iPower Inc is a leading online retailer of hydroponic equipment and supplies. The company offers a wide range of products, including grow lights, ventilation systems, nutrients, and other essential tools for indoor and outdoor plant cultivation. iPower Inc's mission is to provide customers with high-quality products at competitive prices, backed by exceptional customer service. The company serves a diverse customer base, including hobbyists, commercial growers, and educational institutions.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, Chenlong Tan has purchased a total of 20,000 shares and sold 0 shares. This indicates a strong bullish sentiment from the CEO and 10% owner of iPower Inc. The insider transaction history for iPower Inc shows that there have been 3 insider buys in total over the past year, with no insider sells during the same timeframe. This trend can be visualized in the following insider trend image:
On the day of Chenlong Tan's recent purchase, shares of iPower Inc were trading at $0.67 apiece, giving the stock a market cap of $20.520 million. This insider buying activity could be a positive signal for investors, as it demonstrates the CEO's confidence in the company's future growth and performance.
Valuation
To assess the valuation of iPower Inc's stock, we can look at the GF Value, an intrinsic value estimate developed by GuruFocus. The GF Value 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.
The GF Value for iPower Inc can be visualized in the following image:
Considering the insider buying activity, the positive insider trend, and the GF Value, investors may want to keep an eye on iPower Inc's stock. The recent purchase by CEO and 10% owner Chenlong Tan could be a sign of the company's strong growth potential and an opportunity for investors to capitalize on the stock's current valuation.
In conclusion, the insider buying activity by Chenlong Tan, along with the positive insider trend and GF Value, suggests that iPower Inc could be an attractive investment opportunity. As the company continues to grow and expand its product offerings, investors may want to consider adding iPower Inc to their portfolios for potential future gains.
