On May 22, 2023, President and CEO Neil Schrimsher sold 1,655 shares of Applied Industrial Technologies Inc (AIT, Financial), a leading industrial distributor in North America. The company specializes in providing a wide range of industrial products, including bearings, power transmission components, fluid power components, and other industrial supplies. With a strong presence in various industries, Applied Industrial Technologies Inc has established itself as a key player in the market.
Who is Neil Schrimsher?
Neil Schrimsher has been the President and CEO of Applied Industrial Technologies Inc since 2011. With extensive experience in the industrial distribution sector, Schrimsher has played a crucial role in the company's growth and expansion. Under his leadership, Applied Industrial Technologies Inc has continued to strengthen its market position and deliver value to its shareholders.
Insider Trading Analysis
Over the past year, Neil Schrimsher has sold a total of 23,181 shares and purchased 0 shares. This recent sale of 1,655 shares is part of a broader trend of insider selling at Applied Industrial Technologies Inc. In the past year, there have been 0 insider buys and 6 insider sells in total.
Insider trading activity can provide valuable insights into a company's prospects and the confidence of its management. In this case, the consistent selling by insiders, including Neil Schrimsher, may raise questions about the company's future performance and stock price potential. However, it is essential to consider other factors, such as the company's financial health and market conditions, before drawing any conclusions.
Stock Price and Valuation
On the day of Neil Schrimsher's recent sale, shares of Applied Industrial Technologies Inc were trading at $130.01 apiece, giving the company a market capitalization of $4,847.227 million. The stock's price-earnings ratio is 14.74, which is higher than the industry median of 11.91 but lower than the company's historical median price-earnings ratio.
With a current price of $130.01 and a GuruFocus Value of $124.66, Applied Industrial Technologies Inc has a price-to-GF-Value ratio of 1.04. 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.
While the insider selling activity may raise concerns, the stock's current valuation suggests that it is fairly valued. Investors should consider the company's financial health, growth prospects, and market conditions before making any investment decisions. It is essential to conduct thorough research and analysis to make informed decisions in the stock market.
