On September 13, 2023, David Johnson, Vice President and CFO of Johnson Outdoors Inc (JOUT, Financial), sold 1,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 2,000 shares and purchased none.
Johnson Outdoors Inc is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The company designs, manufactures, and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving, and Camping. Johnson Outdoors' iconic brands include: Old Town Canoes and Kayaks, Ocean Kayak, Carlisle Paddles, Minn Kota Fishing Motors, Cannon Downriggers, Humminbird Marine Electronics, SCUBAPRO Dive Equipment, and Eureka! Camping Tents.
The insider's recent sell has raised questions about the company's current stock value and future prospects. To understand the implications of this move, it's essential to analyze the relationship between insider buy/sell trends and the stock price.
The insider transaction history for Johnson Outdoors Inc shows zero insider buys over the past year, while there have been three insider sells during the same period. This trend could indicate that insiders believe the company's stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Johnson Outdoors Inc were trading at $54.85 each, giving the company a market cap of $566.774 million. The price-earnings ratio stands at 12.55, lower than both the industry median of 19.81 and the company's historical median price-earnings ratio. This suggests that the stock may be undervalued.
The GuruFocus Value for Johnson Outdoors Inc is $82.05, resulting in a price-to-GF-Value ratio of 0.67. This indicates that the stock is significantly undervalued 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 business performance estimates from Morningstar analysts.
In conclusion, while the insider's recent sell might raise eyebrows, the analysis suggests that Johnson Outdoors Inc's stock is currently undervalued. Investors should keep a close eye on the company's performance and any future insider transactions to make informed decisions.
