On September 12, 2023, Director Selig Zises sold 5,000 shares of Esquire Financial Holdings Inc (ESQ, Financial). This move comes amidst a year where the insider has sold a total of 41,000 shares and purchased none.
Selig Zises is a seasoned financial professional with a wealth of experience in the banking industry. He has been a director at Esquire Financial Holdings Inc, a company that provides commercial banking, business lending, and insurance services to professional service firms, real estate investors, and high-net-worth individuals. The company operates through its wholly-owned bank subsidiary, Esquire Bank, National Association.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. To understand the implications of this move, it's essential to analyze the insider buy/sell trends and their relationship with the stock price.
The insider transaction history for Esquire Financial Holdings Inc shows a trend of more sells than buys over the past year. There have been 7 insider sells and only 1 insider buy. This could indicate that insiders believe the stock is overvalued or that they expect the stock price to decrease in the future.
On the day of the insider's recent sell, shares of Esquire Financial Holdings Inc were trading for $47.42 apiece, giving the stock a market cap of $387.077 million. The price-earnings ratio is 10.24, which is higher than the industry median of 8.29 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, the stock is fairly valued. With a price of $47.42 and a GuruFocus Value of $50.88, Esquire Financial Holdings Inc has a price-to-GF-Value ratio of 0.93.
In conclusion, the insider's recent sell-off, coupled with the insider transaction trends and the stock's current valuation, may suggest that the stock is fairly valued at its current price. However, investors should always conduct their own due diligence and consider other factors such as the company's financial health, growth prospects, and market conditions before making investment decisions.
