On June 5, 2023, President and COO Brian Olschan sold 3,910 shares of Acme United Corp (ACU, Financial), a leading worldwide supplier of innovative cutting, measuring, and safety products to the school, home, office, hardware, and industrial markets. This recent transaction has brought attention to the company's insider trading activities and its relationship with the stock price.
Brian Olschan has been with Acme United Corp for over 20 years, holding various positions within the company before being appointed as President and COO. His extensive experience and knowledge of the company make his trading activities particularly noteworthy for investors.
Over the past year, Brian Olschan has sold a total of 12,395 shares and purchased 0 shares. This recent sale of 3,910 shares is a continuation of his selling trend, which may raise questions about the company's future prospects and stock performance.
The insider transaction history for Acme United Corp shows that there have been 5 insider buys and 13 insider sells over the past year. This trend suggests that insiders may be more inclined to sell their shares, possibly indicating a lack of confidence in the company's future growth or stock performance.
Shares of Acme United Corp were trading for $26.25 apiece on the day of Brian Olschan's recent sale, giving the stock a market cap of $89.850 million. The price-earnings ratio is 30.17, which is higher than the industry median of 19.69 and higher than the company's historical median price-earnings ratio.
With a price of $26.25 and a GuruFocus Value of $37.77, Acme United Corp has a price-to-GF-Value ratio of 0.69. This means the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on 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 stock appears to be undervalued based on its GF Value, the recent insider selling activity may raise concerns for investors. It is essential for investors to consider both the valuation metrics and insider trading trends when making investment decisions. In the case of Acme United Corp, the stock's undervaluation may present an opportunity for investors, but the insider selling trend should be monitored closely to gauge the company's future prospects and stock performance.
In conclusion, the recent sale of 3,910 shares by President and COO Brian Olschan may raise questions about Acme United Corp's future growth and stock performance. While the stock appears to be undervalued based on its GF Value, the insider selling trend should be monitored closely by investors. By considering both the valuation metrics and insider trading activities, investors can make more informed decisions about their investments in Acme United Corp.
