On May 23, 2023, Svend Andersen, EVP & President of CHCI, purchased 2,900 shares of Perrigo Co PLC (PRGO, Financial), a leading provider of over-the-counter health and wellness solutions. This insider buying activity could be a signal for investors to pay closer attention to the company's stock performance and future prospects.
Who is Svend Andersen?
Svend Andersen is the Executive Vice President and President of Consumer Healthcare International (CHCI) at Perrigo Co PLC. With extensive experience in the pharmaceutical industry, Andersen has held various leadership positions in global companies, contributing to their growth and success. His expertise in the field and commitment to Perrigo's mission make him a valuable asset to the company.
About Perrigo Co PLC
Perrigo Co PLC is a leading global healthcare company that delivers value to its customers and consumers by providing quality, affordable self-care products. The company's primary focus is on over-the-counter (OTC) health and wellness solutions, which empower consumers to prevent or treat conditions that can be self-managed. Perrigo's extensive product portfolio includes OTC medications, infant formulas, nutritional products, and active pharmaceutical ingredients.
Insider Buying Analysis
Over the past year, Svend Andersen has purchased a total of 2,900 shares and sold 0 shares. This recent insider buying activity could indicate that Andersen believes in the company's growth potential and future performance. The insider transaction history for Perrigo Co PLC shows a total of 2 insider buys and 5 insider sells over the past year. While the number of insider sells is higher than the number of insider buys, it is essential to consider the context and motivations behind each transaction.
Stock Price and Valuation
On the day of Svend Andersen's recent purchase, shares of Perrigo Co PLC were trading at $33.41 apiece, giving the stock a market cap of $4,398.09 million. With a price of $33.41 and a GuruFocus Value of $46.38, Perrigo Co PLC has a price-to-GF-Value ratio of 0.72. This ratio suggests that the stock is a possible value trap, and investors should think twice before making a decision based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, 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
Insider buying activity, such as Svend Andersen's recent purchase of 2,900 shares of Perrigo Co PLC, can provide valuable insights into a company's prospects and the insiders' confidence in its future performance. While the stock's price-to-GF-Value ratio suggests caution, investors should consider the broader context and the company's fundamentals before making any decisions. As a leading provider of OTC health and wellness solutions, Perrigo Co PLC has the potential to capitalize on the growing demand for self-care products and deliver value to its shareholders.
