On June 22, 2023, Niehage Frank, CEO of Flatex AG (FTK, Financial), purchased 2,000 shares of the company's stock. This recent insider buying activity has caught the attention of investors and analysts alike, as it may signal a positive outlook for the company's future performance.
Niehage Frank has been with Flatex AG since 2019, serving as the company's CEO. Flatex AG is a leading European online broker, providing a wide range of financial services to retail and institutional clients. The company offers trading in stocks, ETFs, bonds, and other financial instruments, as well as access to various international markets.
Over the past year, Niehage Frank has purchased a total of 465,000 shares and has not sold any shares. This indicates a strong belief in the company's prospects and a commitment to its long-term success.
Insider Trends
The insider transaction history for Flatex AG shows a total of 89 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders are confident in the company's future performance and are accumulating shares as a long-term investment.
Valuation
Shares of Flatex AG were trading at $8.872 apiece on the day of Niehage Frank's recent buy, giving the stock a market cap of $1.063 billion.
The price-earnings ratio is 9.18, which is lower than the industry median of 18.47 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical valuation.
With a price of $8.872 and a GuruFocus Value of $24.53, Flatex AG has a price-to-GF-Value ratio of 0.36. This indicates that the stock is a possible value trap, and investors should think twice before making a decision 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.
In conclusion, the recent insider buying activity by Flatex AG's CEO Niehage Frank, along with the overall positive insider trends, may signal a bullish outlook for the company. However, investors should carefully consider the stock's valuation and potential risks before making a decision. The stock's current price-earnings ratio and price-to-GF-Value ratio suggest that it may be undervalued, but caution is advised due to the possibility of a value trap.
