On May 22, 2023, President, CEO & Chairman Thomas Ryan sold 62,450 shares of Service Corp International (SCI, Financial) at a price of $65.54 per share. This transaction comes amidst a series of insider sells over the past year, with no insider buys recorded during the same period. In this article, we will take a closer look at Thomas Ryan, Service Corp International, and the relationship between insider transactions and the stock price.
Who is Thomas Ryan?
Thomas Ryan is the President, CEO, and Chairman of Service Corp International, a leading provider of deathcare products and services in North America. With over 25 years of experience in the industry, Ryan has played a significant role in the company's growth and expansion. Under his leadership, Service Corp International has become a market leader, operating a network of funeral homes, cemeteries, and crematories across the United States and Canada.
Service Corp International's Business Description
Service Corp International (SCI, Financial) is a prominent deathcare company that offers a wide range of services, including funeral, cremation, and cemetery services. The company operates through two segments: Funeral and Cemetery. The Funeral segment provides funeral services, such as consultation, removal, embalming, and transportation of the deceased, as well as the sale of caskets, urns, and other related funeral merchandise. The Cemetery segment offers cemetery property interment rights, including mausoleum spaces, lawn crypts, and cremation niches, along with cemetery services such as opening and closing of graves, crypts, and niches, and the installation of markers and monuments.
Insider Transactions and Stock Price Relationship
Over the past year, Thomas Ryan has sold a total of 585,000 shares and purchased 0 shares. The insider transaction history for Service Corp International reveals that there have been 0 insider buys and 21 insider sells over the past year. This trend of insider selling could be a signal that insiders believe the stock is overvalued or that they are taking profits after a period of strong performance. However, it is essential to consider other factors, such as the company's financial performance and market conditions, before drawing any conclusions.
Valuation
On the day of Thomas Ryan's recent sell, shares of Service Corp International were trading at $65.54 apiece, giving the stock a market cap of $9,615.915 million. The price-earnings ratio is 20.52, which is higher than the industry median of 16.9 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical valuation.
With a price of $65.54 and a GuruFocus Value of $68.54, Service Corp International has a price-to-GF-Value ratio of 0.96. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using the following three factors:
- 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.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while there has been a trend of insider selling at Service Corp International over the past year, the stock appears to be fairly valued based on its GF Value. Investors should consider other factors, such as the company's financial performance and market conditions, before making any investment decisions.
