On September 15, 2023, Gregory Volovic, President & CEO of Hurco Companies Inc (HURC, Financial), purchased 2,357 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 and its potential implications for investors.
Who is Gregory Volovic?
Gregory Volovic is the President and Chief Executive Officer of Hurco Companies Inc. He has been with the company for several years, demonstrating a deep understanding of the company's operations and strategic direction. His recent purchase of Hurco shares underscores his belief in the company's future growth potential.
About Hurco Companies Inc
Hurco Companies Inc is a global industrial technology company that specializes in the design, manufacture, and sale of computerized (CNC) machine tools. Its products are sold under the Hurco, Milltronics, and Takumi brands. The company's innovative machines are utilized by precision parts manufacturers in the aerospace, defense, medical equipment, energy, transportation, and technology sectors.
Insider Buying Analysis
Over the past year, Gregory Volovic has purchased a total of 2,357 shares and sold 0 shares. This recent acquisition is a positive signal as it indicates the insider's confidence in the company's prospects.
The insider transaction history for Hurco Companies Inc shows a total of 3 insider buys over the past year, with no insider sells recorded over the same timeframe. This trend suggests a positive sentiment among the company's insiders.
Insider buying often precedes a rise in stock price as it indicates that those with the most intimate knowledge of the company's operations see value at the current price. Therefore, the insider's recent purchase could be a positive sign for potential investors.
Valuation
On the day of the insider's recent buy, shares of Hurco Companies Inc were trading at $21.3 each, giving the company a market cap of $137.32 million.
The stock's price-earnings ratio stands at 40.87, which is higher than the industry median of 21.79 and also higher than the company's historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical average.
However, with a price of $21.3 and a GuruFocus Value of $28.80, Hurco Companies Inc has a price-to-GF-Value ratio of 0.74. This indicates that the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) 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 by Gregory Volovic, coupled with the stock's modest undervaluation based on its GF Value, could make Hurco Companies Inc an attractive investment opportunity.
