On September 20, 2023, Michael Doar, the Executive Chairman of Hurco Companies Inc (HURC, Financial), purchased 9,200 shares of the company. This move by the insider has sparked interest in the financial community and warrants a closer look.
Who is Michael Doar?
Michael Doar is the Executive Chairman of Hurco Companies Inc. He has been with the company for several years and has a deep understanding of the company's operations and strategic direction. His decision to buy shares of the company is a strong vote of confidence in its future prospects.
About Hurco Companies Inc
Hurco Companies Inc is a global industrial automation company that designs and produces interactive computer controls, software, and computerized machine systems for the worldwide metal cutting and metal forming industry. The company's innovative technology is aimed at increasing productivity and profitability in the highly competitive machine tool industry.
Insider Buying Analysis
Over the past year, Michael Doar has purchased a total of 9,200 shares and sold 0 shares. This indicates a strong bullish sentiment from the insider towards the company.
The insider transaction history for Hurco Companies Inc shows that there have been 5 insider buys in total over the past year. Meanwhile, there has been only 1 insider sell over the same timeframe. This trend suggests that insiders at Hurco Companies Inc see value in the company's stock.
The relationship between insider buying/selling and the stock price is often considered a strong indicator of a company's future performance. In this case, the insider's decision to buy shares could signal a positive outlook for the company's stock price.
Valuation
On the day of the insider's recent buy, shares of Hurco Companies Inc were trading for $21.59 apiece. This gives the stock a market cap of $138.094 million.
The price-earnings ratio is 41.10, which is higher than the industry median of 21.62 and 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 $21.59 and a GuruFocus Value of $28.90, Hurco Companies Inc has a price-to-GF-Value ratio of 0.75. This means 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 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 insider's recent purchase, coupled with the company's modest undervaluation, could present an attractive opportunity for investors. However, as always, potential investors should conduct their own due diligence before making investment decisions.
