On September 12, 2023, Samuel Johnson, the Executive Vice President of Retail Operations at Academy Sports and Outdoors Inc (ASO, Financial), sold 40,531 shares of the company. This move is part of a trend for the insider, who over the past year, has sold a total of 100,531 shares and made no purchases.
Academy Sports and Outdoors Inc is a leading full-line sporting goods and outdoor recreation retailer in the United States. It offers a broad assortment of quality hunting, fishing, and camping equipment and gear, along with sports and leisure products, footwear, apparel, and much more. The company operates over 259 stores across 16 contiguous states, primarily in the southern United States.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 18 insider sells and no insider buys. This could be a signal to investors about the company's future prospects, as insiders typically sell their shares for various reasons, but they buy them for only one: they think the price will rise.
The above image shows the trend of insider transactions for Academy Sports and Outdoors Inc. The insider's recent sell-off could potentially impact the stock's price, as insider selling can sometimes be a bearish signal. However, it's essential to consider other factors, such as the company's financial health and market conditions.
On the day of the insider's recent sell, shares of Academy Sports and Outdoors Inc were trading for $50.03 apiece, giving the stock a market cap of $3.702 billion. The price-earnings ratio is 7.32, lower than the industry median of 16.77 but higher than the company’s historical median price-earnings ratio.
The above image shows the GF Value of Academy Sports and Outdoors Inc. With a price of $50.03 and a GuruFocus Value of $45.87, the stock has a price-to-GF-Value ratio of 1.09. This suggests that the stock is fairly valued based on its GF Value. 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.
In conclusion, while the insider's recent sell-off could be a bearish signal, other factors such as the company's financial health, market conditions, and the stock's valuation should also be considered. Investors should always do their due diligence and not base their investment decisions solely on insider transactions.
