On September 13, 2023, Treasurer Adam Woodard of Spire Inc sold 779 shares of the company's stock. This move comes amidst a year where the insider has sold a total of 779 shares and purchased 1000 shares.
Adam Woodard is a key figure in the financial operations of Spire Inc, a public utility holding company based in St. Louis, Missouri. The company is engaged in the purchase, retail distribution, and sale of natural gas, serving over 1.7 million customers across the United States.
Over the past year, there have been 3 insider buys and 1 insider sell within the company. This trend suggests a mixed sentiment among the insiders of Spire Inc.
On the day of the insider's recent sell, shares of Spire Inc were trading for $60.42 apiece, giving the company a market cap of $3.19 billion. The price-earnings ratio stands at 14.08, lower than both the industry median of 15.56 and the company’s historical median price-earnings ratio. This suggests that the stock is currently undervalued compared to its peers and its own historical data.
Further analysis using the GuruFocus Value reveals that Spire Inc is modestly undervalued. With a price of $60.42 and a GuruFocus Value of $83.76, the stock has a price-to-GF-Value ratio of 0.72.
The GF Value is an intrinsic value estimate developed by GuruFocus. It 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.
Given the current price and the GF Value, it appears that Spire Inc's stock is modestly undervalued. This, combined with the insider's recent sell, could suggest that the insider believes the stock's price may not fully reflect its intrinsic value. However, it's also important to consider the overall trend of insider transactions. With more insider buys than sells over the past year, it's possible that other insiders have a more optimistic view of the company's future performance.
As always, investors should not solely rely on an insider's transaction to make any investment decision. Instead, it should be used as a starting point to delve deeper into the company's fundamentals, financials, and market conditions.
