On September 11, 2023, Anila Lingamneni, the Executive Vice President and Chief Technology Officer of Haemonetics Corp (HAE, Financial), sold 2,305 shares of the company. This move is part of a series of insider transactions that have taken place over the past year.
Haemonetics Corp is a global healthcare company dedicated to providing a suite of innovative hematology products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Their technology addresses important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services.
Over the past year, the insider has sold a total of 4,609 shares and has not made any purchases. This trend of insider selling is not isolated to Lingamneni alone. The insider transaction history for Haemonetics Corp shows that there have been 12 insider sells over the past year, with no insider buys.
The relationship between insider selling and the stock price can be complex. However, it is generally believed that when insiders sell shares, it may indicate a lack of confidence in the company's future performance. In this case, the consistent selling by insiders over the past year could be seen as a negative signal.
On the day of the insider's recent sale, shares of Haemonetics Corp were trading for $90 apiece, giving the stock a market cap of $4.54 billion. The price-earnings ratio is 33.82, which is higher than the industry median of 27.46 but lower than the company’s historical median price-earnings ratio.
With a price of $90 and a GuruFocus Value of $90.48, Haemonetics Corp has a price-to-GF-Value ratio of 0.99. This means the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) 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 consistent selling by insiders at Haemonetics Corp could be seen as a negative signal, the stock appears to be fairly valued based on its GF Value. Investors should keep a close eye on the company's performance and any future insider transactions.
