On August 30, 2023, Vice President Thomson Andrew Justin Mackenzie sold 11,969 shares of T. Rowe Price Group Inc (TROW, Financial). This move comes as part of a series of transactions by the insider over the past year, during which the insider has sold a total of 30,912 shares and made no purchases.
T. Rowe Price Group Inc is a global investment management organization that provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been zero insider buys and six insider sells. This trend is illustrated in the following chart:
On the day of the insider's recent sell, shares of T. Rowe Price Group Inc were trading for $111.82 each, giving the stock a market cap of $25.29 billion. This price represents a price-earnings ratio of 16.81, which is higher than both the industry median of 13.49 and the company's historical median price-earnings ratio.
Despite this, the stock appears to be modestly undervalued according to the GuruFocus Value. With a price of $111.82 and a GuruFocus Value of $127.56, T. Rowe Price Group Inc has a price-to-GF-Value ratio of 0.88. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value is illustrated in the following chart:
The insider's recent sell-off, combined with the broader trend of insider selling at T. Rowe Price Group Inc, may raise questions for some investors. However, the stock's modest undervaluation according to the GuruFocus Value suggests that there may still be potential for growth. As always, investors should conduct their own research and consider their own financial situation before making investment decisions.
