On October 30, 2023, Kuntal Verma, the Chief Manufacturing Officer of First Solar Inc (FSLR, Financial), sold 1,621 shares of the company. This move comes amidst a year where the insider has sold a total of 4,621 shares and purchased none.
First Solar Inc is a leading global provider of comprehensive photovoltaic (PV) solar systems. The company's integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation. First Solar has developed, financed, engineered, constructed, and currently operates many of the world's largest grid-connected PV power plants.
The insider's recent sell has raised eyebrows in the market, prompting a closer look at the company's insider trading history and its relationship with the stock price.
The insider transaction history for First Solar Inc shows a trend of more sells than buys over the past year. There have been 21 insider sells and only 1 insider buy. This could indicate that insiders believe the stock is overvalued, leading to more sells.
On the day of the insider's recent sell, shares of First Solar Inc were trading for $144.16 apiece, giving the stock a market cap of $15.76 billion. This is a significant figure, especially considering the company's price-earnings ratio of 101.09, which is higher than both the industry median of 21.92 and the company’s historical median price-earnings ratio.
The high price-earnings ratio, coupled with the insider's sell, could be a signal to investors that the stock is overvalued. This is further supported by the company's price-to-GF-Value ratio of 1.38, indicating 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.
In conclusion, the recent sell by the insider, coupled with the company's high price-earnings ratio and price-to-GF-Value ratio, could be a signal to investors that First Solar Inc's stock is currently overvalued. As always, investors are advised to do their own research and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
