On May 22, 2023, Jack Pacheco, the Executive Vice President, Chief Operating Officer, President of Memory Solutions at SMART Global Holdings Inc (SGH, Financial), sold 7,500 shares of the company's stock. This move comes amidst a year of insider transactions that have seen a total of 2 insider buys and 6 insider sells. In this article, we will take a closer look at Jack Pacheco, SMART Global Holdings Inc, and the relationship between insider transactions and stock price.
Who is Jack Pacheco?
Jack Pacheco is a seasoned executive with extensive experience in the technology industry. He currently serves as the Executive Vice President, Chief Operating Officer, and President of Memory Solutions at SMART Global Holdings Inc. Pacheco has been with the company since 2011 and has played a significant role in its growth and success. His expertise in operations, supply chain management, and strategic planning has been instrumental in driving the company's performance.
SMART Global Holdings Inc's Business Description
SMART Global Holdings Inc is a leading provider of specialty memory, storage, and hybrid solutions for the electronics industry. The company operates through three main segments: Specialty Memory Solutions, Brazil, and Specialty Compute and Storage Solutions. Its products include DRAM memory modules, solid-state drives, and embedded computing subsystems, which are used in a wide range of applications, including computing, networking, communications, storage, and industrial markets. SMART Global Holdings Inc is committed to delivering innovative and high-quality solutions to its customers, helping them stay ahead in the rapidly evolving technology landscape.
Analysis of Insider Buy/Sell and the Relationship with the Stock Price
Over the past year, Jack Pacheco has sold a total of 7,500 shares and purchased 0 shares. This recent sale of 7,500 shares took place when the stock was trading at $20 per share, giving the company a market cap of $1,078.597 million. The price-earnings ratio of the stock is 56.36, which is higher than the industry median of 22.41 and higher than the company's historical median price-earnings ratio.
The stock's price-to-GF-Value ratio is 0.84, based on a GuruFocus Value of $23.95. This indicates that the stock is fairly valued. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), 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 SMART Global Holdings Inc shows a total of 2 insider buys and 6 insider sells over the past year. This suggests that insiders may have a mixed view of the company's prospects, with some taking advantage of the stock's current valuation to sell their shares, while others may see potential for future growth and have decided to hold onto their shares or even buy more.
It is important for investors to consider insider transactions as one of many factors when evaluating a stock. While insider selling can sometimes signal a lack of confidence in a company's future prospects, it can also be motivated by personal financial needs or portfolio diversification. In the case of Jack Pacheco's recent sale of 7,500 shares of SMART Global Holdings Inc, it is unclear what the exact motivation behind the transaction was. However, given the stock's current valuation and the overall trend of insider transactions over the past year, investors should continue to monitor the company's performance and insider activity to make informed decisions about their investments.
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