On September 11, 2023, Kenneth Boller, the Chief Financial Officer (CFO) of Akoustis Technologies Inc (AKTS, Financial), sold 3,900 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 7,100 shares and made no purchases.
Akoustis Technologies Inc is a high-tech company that designs and manufactures innovative radio frequency (RF) filters. These filters are used in mobile and other wireless applications, including those in the defense and public safety sectors. The company's patented XBAW technology is a key differentiator, offering superior performance and size advantages over competitors.
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 relationship between insider trading and the stock's price.
The insider transaction history for Akoustis Technologies Inc shows a clear trend of selling over the past year, with 11 insider sells and no buys. This could indicate that insiders believe the stock is overvalued or that they expect the company's performance to decline.
However, the stock's current price of $1.1 and a market cap of $70.028 million suggest a different story. According to the GuruFocus Value, which stands at $13.77, the stock is significantly undervalued, with a price-to-GF-Value ratio of 0.08. This could mean that the stock is a possible value trap, and investors should think twice before buying.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates. Despite the insider's sell-off, the low price-to-GF-Value ratio suggests that the stock might still be a good buy for value investors.
However, investors should also consider the insider's trading activity. The insider's selling trend could be a red flag, indicating potential issues within the company or a lack of confidence in its future performance. Therefore, investors should carefully analyze all available information and consider their risk tolerance before making a decision.
In conclusion, while Akoustis Technologies Inc appears undervalued based on its GF Value, the insider's selling activity raises concerns. Investors should proceed with caution and conduct thorough due diligence before investing in this stock.
