On September 13, 2023, Michael Depasquale, Chairman of BIO-key International Inc (BKYI, Financial), purchased 5,100 shares of the company, signaling a strong vote of confidence in the firm's prospects. This article will delve into the details of this insider buying activity, the company's business, and the potential implications for investors.
Who is Michael Depasquale?
Michael Depasquale is the Chairman and CEO of BIO-key International Inc. He has been at the helm of the company for several years, guiding its strategic direction and overseeing its operations. His recent purchase of additional shares in the company underscores his belief in the company's future growth.
About BIO-key International Inc
BIO-key International Inc is a leading provider of biometric identity and access management solutions. The company's innovative software and hardware solutions are used worldwide by businesses, governments, and individuals to enhance security, improve productivity, and protect personal identities. BIO-key's solutions include fingerprint biometric hardware, identity management software, and biometric consulting services.
Analysis of Insider Buying and Stock Price
Over the past year, the insider has purchased a total of 6,100 shares and sold none. This recent acquisition of 5,100 shares is a significant addition to his holdings, indicating a strong belief in the company's prospects.
The insider transaction history for BIO-key International Inc shows a total of 4 insider buys over the past year, with no insider sells during the same period. This trend suggests a positive sentiment among the company's insiders.
On the day of the insider's recent buy, shares of BIO-key International Inc were trading at $0.51, giving the company a market cap of $4.674 million. Despite the relatively small market cap, the insider's significant purchase indicates a strong belief in the company's value and potential for growth.
Valuation and GF Value
With a trading price of $0.51 and a GuruFocus Value of $3.02, BIO-key International Inc has a price-to-GF-Value ratio of 0.17. This suggests that the stock is currently undervalued, potentially representing a value trap. Investors should exercise caution and conduct thorough research before making investment decisions.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at BIO-key International Inc, coupled with the company's undervalued status according to its GF Value, suggests potential opportunities for investors. However, as always, potential investors should conduct their own due diligence before making investment decisions.
