On June 7, 2023, Yin-chieh Cheng, CEO, President & Director, and 10% Owner of Nocera Inc (NCRA, Financial), purchased 43,000 shares of the company. This move comes as part of a series of insider transactions over the past year, during which Cheng has acquired a total of 88,000 shares and sold none.
Yin-chieh Cheng has been with Nocera Inc since its inception and has played a crucial role in the company's growth and development. Nocera Inc is a leading provider of land-based and floating recirculating aquaculture systems (RAS) that are designed to produce high-quality fish in an environmentally sustainable manner. The company's innovative solutions have garnered significant attention in the aquaculture industry, and its stock has experienced steady growth in recent years.
Insider transactions can provide valuable insights into a company's prospects and the confidence of its management team. In this case, the recent insider buying activity at Nocera Inc suggests that Cheng and other insiders believe in the company's future growth potential.
Insider Trends
Over the past year, there have been two insider buys at Nocera Inc, both by Yin-chieh Cheng. No insider sells have been recorded during the same period. This trend can be visualized in the following chart:
This pattern of insider buying indicates a positive sentiment among the company's insiders, which could be a bullish signal for investors. It is worth noting that insider transactions are just one piece of the puzzle when evaluating a stock's potential, and investors should also consider other factors such as financial performance, industry trends, and overall market conditions.
Valuation
On the day of Yin-chieh Cheng's recent purchase, shares of Nocera Inc were trading at $1.59 apiece, giving the company a market capitalization of $17.686 million. To assess the stock's valuation, we can look at the GF Value, an intrinsic value estimate developed by GuruFocus that takes into account historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
Based on these factors, the GF Value for Nocera Inc is currently $X.XX per share. Comparing this to the stock's current trading price of $1.59, we can determine whether the stock is overvalued, undervalued, or fairly valued. If the stock's price is significantly below the GF Value, it may be considered undervalued and present a buying opportunity for investors. Conversely, if the stock's price is significantly above the GF Value, it may be overvalued and warrant caution from investors.
Conclusion
The recent insider buying activity at Nocera Inc, particularly the 43,000 shares purchased by CEO, President & Director, and 10% Owner Yin-chieh Cheng, suggests that the company's insiders have confidence in its future growth prospects. This, combined with the stock's valuation based on the GF Value, can provide valuable insights for investors considering an investment in Nocera Inc.
However, it is essential for investors to conduct thorough research and consider other factors such as financial performance, industry trends, and overall market conditions before making any investment decisions. As always, a well-rounded approach to stock analysis is the key to long-term success in the stock market.
