On September 7, 2023, Ademir Sarcevic, Vice President, CFO, and Treasurer of Standex International Corp (SXI, Financial), sold 3,100 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
But who is Ademir Sarcevic? Sarcevic is a seasoned financial executive with a wealth of experience in the industry. As the Vice President, CFO, and Treasurer of Standex International Corp, he plays a crucial role in the company's financial operations and strategic planning. His decision to sell shares of the company is therefore noteworthy and warrants further analysis.
Standex International Corp is a diversified manufacturing company with a broad range of products and services for various industrial markets. The company operates through five segments: Electronics, Engraving, Engineering Technologies, Hydraulics, and Food Service Equipment. With a market cap of $1.721 billion, Standex International Corp is a significant player in its industry.
Over the past year, Sarcevic has sold a total of 7,810 shares and purchased 0 shares. This trend is consistent with the overall insider transaction history for Standex International Corp, which shows 0 insider buys and 20 insider sells over the past year.
The relationship between insider transactions and stock price is complex. Generally, insider selling can be seen as a bearish signal, suggesting that insiders may believe the stock is overvalued. However, it's important to note that insiders may sell shares for a variety of reasons, not necessarily related to their outlook on the stock's future performance.
On the day of the insider's recent sell, shares of Standex International Corp were trading for $149.51 apiece. This gives the stock a price-earnings ratio of 12.45, lower than both the industry median of 22.38 and the company’s historical median price-earnings ratio. This suggests that, despite the insider selling, the stock may still be undervalued compared to its peers and its own historical valuation.
However, with a price of $149.51 and a GuruFocus Value of $113.07, Standex International Corp has a price-to-GF-Value ratio of 1.32. This indicates that the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell may raise some eyebrows, a deeper analysis suggests a more nuanced picture. Despite the insider selling, Standex International Corp's stock may still offer value, albeit at a modestly overvalued level. As always, investors should conduct their own due diligence and consider a variety of factors before making investment decisions.
