On September 11, 2023, Adam Elsesser, the CEO and President of Penumbra Inc (PEN, Financial), sold 9,666 shares of the company. This move is part of a trend for Elsesser, who over the past year has sold a total of 48,330 shares and purchased none.
Penumbra Inc is a global healthcare company focused on innovative therapies. The company designs, develops, manufactures, and markets innovative medical devices addressing challenging medical conditions and significant clinical needs across two major markets, neuro and vascular. They provide products that are designed to provide significant clinical benefits, improve patient outcomes, and enhance the lives of patients who suffer from strokes, blood clots, and other related conditions.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 36 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Penumbra Inc were trading for $298.76 each, giving the company a market cap of $10.55 billion. This price represents a price-earnings ratio of 371.04, which is higher than the industry median of 27.85 but lower than the company’s historical median price-earnings ratio.
Despite the insider's sell-off, the stock appears to be modestly undervalued according to the GuruFocus Value. With a price of $298.76 and a GuruFocus Value of $332.31, Penumbra Inc has a price-to-GF-Value ratio of 0.9. 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. The GF Value is illustrated in the following image:
The insider's sell-off, combined with the stock's modest undervaluation, suggests that potential investors should keep a close eye on Penumbra Inc. While the insider's actions may raise some concerns, the company's strong fundamentals and the stock's undervaluation provide a compelling case for potential investment.
As always, potential investors should conduct their own due diligence and consider multiple factors before making investment decisions.
