On October 3, 2023, David Grzebinski, President & CEO of Kirby Corp (KEX, Financial), sold 5,000 shares of the company. This move comes amidst a year where the insider has sold a total of 44,634 shares and purchased none.
David Grzebinski has been with Kirby Corp for several years, serving in various leadership roles before assuming his current position as President and CEO. Under his leadership, Kirby Corp, a leading distributor and services provider in the marine and diesel engine markets, has seen significant growth and expansion.
Kirby Corp operates in the marine transportation and diesel engine services sectors. The company's marine transportation division is the largest operator of tank barges in the United States, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and along all three U.S. coasts and in Alaska and Hawaii. The diesel engine services division provides after-market services for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. The stock was trading at $80.54 per share on the day of the insider's recent sell, giving the company a market cap of $4.854 billion.
The price-earnings ratio of Kirby Corp is 28.13, significantly higher than the industry median of 12.69 and the company’s historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its own historical standards.
The GuruFocus Value of Kirby Corp is $73.28, resulting in a price-to-GF-Value ratio of 1.1. This indicates that the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
The insider transaction history for Kirby Corp shows a trend of more sells than buys over the past year. There have been 28 insider sells and only 1 insider buy during this period. This could be a signal that insiders believe the stock is overvalued and are taking the opportunity to cash in on their holdings.
In conclusion, the recent sell-off by the insider, coupled with the company's high price-earnings ratio and modest overvaluation based on its GF Value, may suggest caution for potential investors. However, as always, it is crucial to consider the broader market context and other fundamental factors before making investment decisions.
