On September 28, 2023, Director Sharp Ingle sold 2,000 shares of Ingles Markets Inc (IMKTA, Financial). This move comes amidst a year where the insider has sold a total of 40,500 shares and purchased none.
Sharp Ingle is a key figure in the Ingles Markets Inc, a leading supermarket chain with operations in the Southeastern United States. The company, founded in 1963, operates supermarkets under the Ingles brand, offering groceries, non-food products, perishables, and other locally sourced food products. The company also operates gas stations and offers pharmaceutical products through its in-store pharmacies.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 18 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 Ingles Markets Inc were trading for $75.5 each, giving the company a market cap of $1.434 billion. The price-earnings ratio stands at 6.29, significantly lower than the industry median of 17.12 and the company's historical median price-earnings ratio.
Despite the insider's sell-off, the stock appears to be modestly undervalued. With a price of $75.5 and a GuruFocus Value of $87.87, Ingles Markets Inc has a price-to-GF-Value ratio of 0.86. 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 sell-off, coupled with the stock's modest undervaluation, presents a complex picture for potential investors. While the insider's actions may suggest a lack of confidence in the company's short-term prospects, the stock's valuation indicates potential for growth in the long term. As always, investors are advised to conduct their own thorough research before making any investment decisions.
