On November 1, 2023, Mary Hall, a director at Applied Industrial Technologies Inc (AIT, Financial), sold 2,000 shares of the company's stock. This move is part of a trend observed over the past year, where the insider has sold a total of 2,000 shares and purchased none.
Applied Industrial Technologies Inc is a leading industrial distributor in North America, Australia, and New Zealand, providing a wide range of products and value-added services to customers in the industrial sector. The company's portfolio includes bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, and other industrial and maintenance supplies.
The insider's recent sell has raised some eyebrows in the market, especially considering the company's performance and valuation. On the day of the insider's recent sell, shares of Applied Industrial Technologies Inc were trading for $153.99 apiece, giving the company a market cap of $6.089 billion.
The company's price-earnings ratio stands at 16.97, which is higher than the industry median of 11.74 but lower than the company’s historical median price-earnings ratio. This suggests that the company's shares are trading at a premium compared to its peers but are undervalued based on its own historical standards.
The GF Value, an intrinsic value estimate developed by GuruFocus, for Applied Industrial Technologies Inc is $134.47. With a price of $153.99, the stock has a price-to-GF-Value ratio of 1.15, indicating that the stock is modestly overvalued.
The GF Value is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
The insider transaction history for Applied Industrial Technologies Inc shows that there have been no insider buys over the past year. Meanwhile, there have been five insider sells over the same timeframe. This trend could suggest that insiders believe the company's stock is overvalued, prompting them to sell their shares.
In conclusion, the insider's recent sell of 2,000 shares of Applied Industrial Technologies Inc could be a signal to investors about the company's current valuation. However, investors should also consider other factors such as the company's financial health, market conditions, and future growth prospects before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
