On May 22, 2023, Michael Brown, CEO and President of Euronet Worldwide Inc (EEFT, Financial), sold 50,000 shares of the company's stock. This move comes as part of a series of transactions by Brown over the past year, during which he has sold a total of 65,689 shares and purchased none.
Who is Michael Brown?
Michael Brown has been with Euronet Worldwide Inc since its inception in 1994 and has served as the CEO and President of the company since 2005. Under his leadership, the company has grown into a global leader in electronic transaction processing and payment services, providing solutions to financial institutions, retailers, service providers, and individual consumers.
About Euronet Worldwide Inc
Euronet Worldwide Inc is a leading global provider of electronic payment and transaction processing solutions for financial institutions, retailers, service providers, and individual consumers. The company operates in three segments: Electronic Financial Transactions (EFT), epay, and Money Transfer. Euronet's services include ATM and POS services, prepaid mobile airtime, and other electronic payment processing solutions, as well as money transfer services through its subsidiary, Ria Money Transfer.
Insider Trends
Over the past year, there have been no insider buys for Euronet Worldwide Inc, while there have been two insider sells, including the recent transaction by Michael Brown. This trend may indicate that insiders believe the stock is fairly valued or overvalued, or it could simply be a result of personal financial decisions by the insiders.
Valuation
On the day of Michael Brown's recent sale, shares of Euronet Worldwide Inc were trading at $120.69 apiece, giving the stock a market cap of $5,576.556 million. The price-earnings ratio is 24.09, which is lower than the industry median of 26.7 and lower than the company's historical median price-earnings ratio.
With a price of $120.69 and a GuruFocus Value of $137.34, Euronet Worldwide Inc has a price-to-GF-Value ratio of 0.88. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on 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.
Conclusion
The recent insider sell by Michael Brown, CEO and President of Euronet Worldwide Inc, may raise questions about the company's valuation and future prospects. However, it is essential to consider the overall context of the transaction and the company's performance. With a price-to-GF-Value ratio of 0.88, the stock is modestly undervalued, and the company has a strong track record of growth and performance under Brown's leadership. Investors should continue to monitor insider transactions and other relevant factors to make informed decisions about Euronet Worldwide Inc's stock.
