On September 12, 2023, John Marcolini, the Senior Vice President of Networked Solutions at Itron Inc (ITRI, Financial), sold 299 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 4,168 shares and made no purchases.
Itron Inc is a technology company that provides end-to-end solutions that measure, manage, and analyze energy and water use. The company's broad product portfolio includes electricity, gas, water, and thermal energy measurement and control technology; communications systems; software; and professional services. With thousands of employees supporting nearly 8,000 customers in more than 100 countries, Itron empowers utilities to responsibly and efficiently manage energy and water resources.
The insider's recent sell-off has raised questions among investors and market watchers. 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 Itron Inc shows zero insider buys over the past year, while there have been 23 insider sells during the same period. This trend could indicate that insiders believe the company's stock is overvalued, leading them to sell their shares.
On the day of the insider's recent sell, Itron Inc's shares were trading at $63.1 each, giving the company a market cap of $2.89 billion. The price-earnings ratio stood at 74.67, significantly higher than the industry median of 21.79 and the company's historical median price-earnings ratio. This high P/E ratio could suggest that the stock is overpriced, which might be a reason for the insider's sell-off.
However, the price-to-GF-Value ratio of 1.03 indicates 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 business performance estimates from Morningstar analysts.
In conclusion, while the insider's sell-off might raise eyebrows, the stock's valuation metrics suggest that it is fairly valued. Investors should keep a close eye on further insider transactions and other market indicators to make informed investment decisions.
