On September 11, 2023, John Montgomery, the Chief Operating Officer (COO) of Westwood Holdings Group Inc (WHG, Financial), sold 1,667 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 1,667 shares and purchased none.
Westwood Holdings Group Inc is a Dallas-based investment management firm. The company provides investment advisory services to a range of clients, including institutional investors, private wealth clients, and mutual fund investors. Westwood prides itself on its independent research, strategic approach, and commitment to its clients.
The insider's recent sell has raised some eyebrows in the investment community. Over the past year, there have been no insider buys and seven insider sells for Westwood Holdings Group Inc. This trend is illustrated in the following image:
The insider's sell comes at a time when Westwood Holdings Group Inc's shares were trading at $9.9 apiece, giving the stock a market cap of $88.153 million. Despite the insider's sell, the stock's price-to-GF-Value ratio stands at 0.61, indicating that it may be a possible value trap. This is further illustrated in the GF Value image below:
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. With a price of $9.9 and a GuruFocus Value of $16.15, the stock appears to be undervalued.
However, the insider's sell could be a signal to investors to tread carefully. While the stock appears to be undervalued based on its GF Value, the lack of insider buys and the number of insider sells over the past year could indicate that those with intimate knowledge of the company do not see it as a good investment at this time.
As always, investors should conduct their own research and consider multiple factors before making investment decisions. While insider sells can provide valuable insights, they are just one piece of the puzzle.
