On May 23, 2023, Executive Vice President and Chief Financial Officer Scott Flaherty sold 1,295 shares of Willis Lease Finance Corp (WLFC, Financial), a leading provider of leasing services for commercial aircraft engines and related equipment. This recent transaction is part of a series of insider sales by Flaherty over the past year, during which he has sold a total of 22,658 shares and purchased none.
Who is Scott Flaherty?
Scott Flaherty has been serving as the Executive Vice President and Chief Financial Officer of Willis Lease Finance Corp since 2015. With over 20 years of experience in the aviation industry, Flaherty has held various leadership positions in finance and operations at companies such as JetBlue Airways and Pinnacle Airlines. His expertise in the field has been instrumental in driving the financial performance and growth of Willis Lease Finance Corp.
Willis Lease Finance Corp's Business Description
Willis Lease Finance Corp is a global provider of leasing services for commercial aircraft engines and related equipment. The company's primary business is leasing engines and aircraft parts to airlines, aircraft manufacturers, and maintenance, repair, and overhaul (MRO) providers. Willis Lease Finance Corp also offers engine management services, including fleet planning, engine overhauls, and asset management. The company's extensive inventory and expertise in the aviation industry have made it a trusted partner for clients worldwide.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, there have been no insider buys for Willis Lease Finance Corp, while there have been 16 insider sells, including the recent sale by Scott Flaherty. This trend may indicate that insiders believe the stock is fairly valued or overvalued, leading them to sell their shares.
On the day of Flaherty's recent sale, shares of Willis Lease Finance Corp were trading at $42.17, giving the stock a market cap of $260.487 million. The price-earnings ratio is 9.38, which is lower than the industry median of 16.71 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 historical valuation.
With a price of $42.17 and a GuruFocus Value of $42.83, Willis Lease Finance Corp has a price-to-GF-Value ratio of 0.98. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using 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 sell by Scott Flaherty, along with the overall trend of insider sells over the past year, may suggest that insiders believe the stock is fairly valued or overvalued. However, the stock's price-earnings ratio and price-to-GF-Value ratio indicate that it may be undervalued compared to its peers and historical valuation. Investors should carefully consider these factors and conduct further research before making any investment decisions regarding Willis Lease Finance Corp.
