On May 25, 2023, Kevin Clark, Chairman and CEO of Aptiv PLC (APTV, Financial), sold 13,330 shares of the company's stock. This move comes as part of a series of transactions by Clark over the past year, during which he has sold a total of 146,670 shares and purchased none.
Who is Kevin Clark of Aptiv PLC?
Kevin Clark has been with Aptiv PLC since 2010, initially serving as the company's Chief Financial Officer before being appointed as President and CEO in 2014. Under his leadership, Aptiv has become a global technology leader in the automotive industry, focusing on the development of safer, greener, and more connected solutions for a diverse range of vehicle manufacturers.
Aptiv PLC's Business Description
Aptiv PLC is a global technology company that specializes in designing and manufacturing vehicle components and providing electrical, electronic, and safety technology solutions to the automotive sector. The company operates through two segments: Signal and Power Solutions, which provides components and systems for electrical power and signal distribution; and Advanced Safety and User Experience, which offers a range of electronic and safety equipment, including advanced driver-assistance systems, user experience, and connected services.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, there have been no insider buys for Aptiv PLC, while there have been 15 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of a high stock price to cash in on their holdings. However, it is essential to consider other factors, such as the company's financial performance and overall market conditions, before drawing any conclusions.
On the day of Kevin Clark's recent sale, shares of Aptiv PLC were trading at $90.19, giving the company a market cap of $24,921.754 million. The stock's price-earnings ratio is 41.50, which is higher than the industry median of 16.48 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical valuation.
However, with a price of $90.19 and a GuruFocus Value of $129.16, Aptiv PLC has a price-to-GF-Value ratio of 0.7, indicating that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
While the recent insider sell by Kevin Clark and the overall trend of insider sells over the past year may raise some concerns, it is essential to consider the broader context of the company's financial performance and valuation. Aptiv PLC's stock appears to be modestly undervalued based on its GF Value, suggesting that there may still be potential for growth. Investors should continue to monitor insider transactions, financial performance, and market conditions to make informed decisions about their investments in Aptiv PLC.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
