On September 12, 2023, Director Joseph Scaminace sold 1,660 shares of Parker Hannifin Corp (PH, Financial). This move comes amidst a year where the insider has sold a total of 1,660 shares and purchased none.
Joseph Scaminace is a prominent figure in the Parker Hannifin Corp, serving as a Director. Parker Hannifin Corp is a leading global diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial, and aerospace markets. The company's products are vital to virtually everything that moves or requires control, including the manufacture and processing of raw materials, durable goods, infrastructure development, and all forms of transport.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 28 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 Parker Hannifin Corp were trading for $409.91 apiece, giving the stock a market cap of $50.75 billion. This valuation is based on a price-earnings ratio of 24.70, which is higher than both the industry median of 21.73 and the company’s historical median price-earnings ratio.
The stock's price-to-GF-Value ratio is 1.07, indicating that it is fairly valued based on its GF Value of $381.53. 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 decision to sell shares could be influenced by a variety of factors. It's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. However, the absence of insider buying over the past year could be a point of concern for investors.
In conclusion, while the insider's recent sell-off and the broader trend of insider selling at Parker Hannifin Corp may raise questions, the company's solid valuation metrics and the stock's fair GF Value suggest that the company remains a stable investment. Investors should continue to monitor insider activity and other key financial indicators to make informed investment decisions.
