On September 8, 2023, Gary Bhojwani, CEO of CNO Financial Group Inc (CNO, Financial), sold 21,739 shares of the company. This move is part of a series of insider transactions that have taken place over the past year.
Gary Bhojwani is a seasoned executive with a wealth of experience in the insurance industry. As the CEO of CNO Financial Group Inc, he is responsible for the strategic direction and overall performance of the company. His recent sale of shares is noteworthy and warrants a closer look.
CNO Financial Group Inc is a holding company for a group of insurance companies operating throughout the United States. The company focuses on serving the senior and middle-income markets, offering a range of life and health insurance products, annuities, and supplemental health insurance.
Over the past year, Bhojwani has sold a total of 21,739 shares and has not made any purchases. This trend is mirrored in the broader insider transaction history for CNO Financial Group Inc, which shows 1 insider buy and 8 insider sells over the same timeframe.
The insider's selling activity can have various implications. It could be a personal financial decision or could indicate the insider's sentiment about the company's future prospects. In this case, the consistent selling by the insider over the past year could be a signal to investors to tread carefully.
On the day of the insider's recent sale, shares of CNO Financial Group Inc were trading at $23, giving the company a market cap of $2.62 billion. The price-earnings ratio stood at 12.12, slightly lower than the industry median of 12.17 but higher than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, CNO Financial Group Inc is modestly undervalued. The stock's price-to-GF-Value ratio stands at 0.87, with a GF Value of $26.38.
Despite the insider's selling activity, the valuation suggests that the stock could still offer value to investors. However, investors should always consider the broader context, including other financial indicators and market conditions, before making investment decisions.
In conclusion, the recent sale of shares by CEO Gary Bhojwani is a significant development for CNO Financial Group Inc. While the company appears to be modestly undervalued according to the GuruFocus Value, the consistent selling activity by the insider over the past year could be a cause for caution among investors.
