On September 12, 2023, 10% Owner Allan Martin made a significant investment in Oxbridge Re Holdings Ltd (OXBR, Financial), purchasing 100,000 shares of the company. This move is noteworthy and warrants a closer look at the insider's trading history, the company's business, and the relationship between insider trading and stock price.
Who is Allan Martin?
Allan Martin is a 10% owner of Oxbridge Re Holdings Ltd. His recent purchase of 100,000 shares is a strong vote of confidence in the company's future prospects. Over the past year, Martin has purchased a total of 100,000 shares and has not sold any shares, indicating a bullish sentiment towards the company.
About Oxbridge Re Holdings Ltd
Oxbridge Re Holdings Ltd is a specialty property and casualty reinsurer. The company provides reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States. Through its subsidiary, Oxbridge Reinsurance Limited, it writes fully collateralized policies to cover property losses from specified catastrophes.
Insider Buying and Stock Price
Insider buying is often seen as a positive sign, as it suggests that those with the most insight into a company's operations see value in its stock. In the case of Oxbridge Re Holdings Ltd, the insider transaction history shows a single insider buy over the past year, with no insider sells recorded over the same timeframe.
The above chart illustrates the trend of insider buying. The recent purchase by the insider could be a positive signal for potential investors considering the company's stock.
Valuation and GF Value
On the day of the insider's recent buy, shares of Oxbridge Re Holdings Ltd were trading at $1.37, giving the company a market cap of $5.988 million.
The GuruFocus Value for Oxbridge Re Holdings Ltd is $2.01, resulting in a price-to-GF-Value ratio of 0.68. This suggests that the stock is a possible value trap, and potential investors should think twice before investing. The GF Value is an intrinsic value estimate developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the recent insider buying activity at Oxbridge Re Holdings Ltd is a positive sign. However, the company's valuation suggests caution. Potential investors should carefully consider these factors before making an investment decision.
