On September 21, 2023, Reginald Brown, a director at Blackstone Inc (BX, Financial), purchased 1,842 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
Who is Reginald Brown?
Reginald Brown is a seasoned executive with a wealth of experience in the financial industry. He has been a director at Blackstone Inc, one of the world's leading investment firms, for several years. His insider buying activity is often closely watched by investors as it can provide valuable insights into the company's performance and future prospects.
About Blackstone Inc
Blackstone Inc is a premier global investment and advisory firm that provides a range of financial services to a substantial and diversified client base, including corporations, financial institutions, governments, and individuals. With a market cap of $83.87 billion, Blackstone Inc is a significant player in the financial sector.
Insider Buying Analysis
Over the past year, Reginald Brown has purchased a total of 1,842 shares and sold 0 shares. This indicates a positive sentiment towards the company's stock. The insider's buying activity can often be a strong indicator of a company's future performance.
The insider transaction history for Blackstone Inc shows a total of 6 insider buys and 7 insider sells over the past year. This suggests a mixed sentiment among insiders, with a slight tilt towards selling.
Stock Price and Valuation
On the day of the insider's recent buy, shares of Blackstone Inc were trading at $111.24, giving the company a market cap of $83.87 billion. The price-earnings ratio is 67.26, significantly higher than the industry median of 12.98 and the company’s historical median price-earnings ratio.
With a price of $111.24 and a GuruFocus Value of $73.83, Blackstone Inc has a price-to-GF-Value ratio of 1.51. This suggests that the stock is significantly overvalued 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.
Conclusion
The insider's recent purchase of Blackstone Inc shares, despite the stock being significantly overvalued based on its GF Value, could be a positive sign for the company's future performance. However, investors should also consider the overall insider transaction history and the company's high price-earnings ratio before making investment decisions.
