On May 22, 2023, Executive Vice President and Chief Underwriting Officer Andrew Mccray sold 978 shares of AMERISAFE Inc (AMSF, Financial), a specialty provider of workers' compensation insurance. This transaction comes amidst a year where Mccray has sold a total of 978 shares and purchased none.
Who is Andrew Mccray?
Andrew Mccray is the Executive Vice President and Chief Underwriting Officer of AMERISAFE Inc. He has been with the company since 2003 and has held various leadership positions within the organization. Mccray's experience and expertise in the insurance industry have been instrumental in shaping the company's underwriting strategies and risk management practices.
About AMERISAFE Inc
AMERISAFE Inc is a leading provider of workers' compensation insurance, focusing on small to mid-sized employers engaged in hazardous industries, such as construction, trucking, agriculture, and manufacturing. The company is known for its exceptional underwriting expertise, proactive safety programs, and outstanding claims management, which have contributed to its strong financial performance and industry recognition.
Insider Buy/Sell Analysis and Stock Price Relationship
Over the past year, there have been no insider buys for AMERISAFE Inc, while there has been one insider sell, which was Andrew Mccray's recent sale of 978 shares. This could indicate that insiders believe the stock is fairly valued or overvalued, as they are not actively purchasing shares.
On the day of Mccray's recent sale, shares of AMERISAFE Inc were trading at $54.42, giving the stock a market capitalization of $987.456 million. The price-earnings ratio is 17.84, which is higher than the industry median of 12.96 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 $54.42 and a GuruFocus Value of $50.99, AMERISAFE Inc has a price-to-GF-Value ratio of 1.07. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
Andrew Mccray's recent sale of 978 shares of AMERISAFE Inc could signal that insiders believe the stock is fairly valued or overvalued. The stock's price-earnings ratio is higher than the industry median and its historical median, suggesting that it may be overvalued compared to its peers and its past valuation. However, the price-to-GF-Value ratio indicates that the stock is fairly valued based on its intrinsic value estimate.
Investors should keep an eye on insider transactions and the stock's valuation metrics to determine if AMERISAFE Inc is an attractive investment opportunity. As always, it is essential to conduct thorough research and consider various factors before making any investment decisions.
