On May 24, 2023, Todd Schwartz, CEO and 10% Owner of OppFi Inc (OPFI, Financial), purchased 3,688 shares of the company's stock. This recent insider buying activity has sparked interest among investors and analysts, as it may signal a positive outlook for the company.
Who is Todd Schwartz?
Todd Schwartz is the CEO and a 10% Owner of OppFi Inc. He has been instrumental in the growth and development of the company, leading it through various stages of expansion. With a strong background in finance and management, Schwartz has been able to steer the company towards success in the competitive financial services industry.
About OppFi Inc
OppFi Inc is a financial technology company that focuses on providing accessible and affordable financial services to everyday consumers. The company offers a range of products and services, including personal loans, credit building tools, and financial education resources. OppFi Inc aims to empower consumers by providing them with the tools and resources they need to improve their financial health and achieve their financial goals.
Insider Buying Analysis
Over the past year, Todd Schwartz has purchased a total of 380,183 shares and has not sold any shares. This recent purchase of 3,688 shares further demonstrates his confidence in the company's future prospects. The insider transaction history for OppFi Inc shows a total of 70 insider buys over the past year, while there have been only 5 insider sells during the same period. This trend suggests that insiders are generally bullish on the company's prospects and believe that the stock is undervalued.
Stock Price and Valuation
On the day of Todd Schwartz's recent purchase, shares of OppFi Inc were trading at $2.18 apiece, giving the stock a market capitalization of $33.553 million. The price-earnings ratio is 55.00, which is higher than the industry median of 26.79 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical trading levels.
However, it is essential to consider the GF Value, an intrinsic value estimate developed by GuruFocus. The GF Value 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.
By taking these factors into account, investors can gain a more comprehensive understanding of the stock's valuation and potential future performance. While the price-earnings ratio may suggest that the stock is overvalued, the GF Value may provide a different perspective based on the company's historical trading multiples, past performance, and future growth prospects.
Conclusion
The recent insider buying activity by Todd Schwartz, CEO and 10% Owner of OppFi Inc, indicates a positive outlook for the company. With a total of 380,183 shares purchased over the past year and a trend of more insider buys than sells, it appears that insiders are confident in the company's future prospects. While the stock's price-earnings ratio may suggest overvaluation, investors should consider the GF Value and other factors to gain a more comprehensive understanding of the stock's potential. As always, it is crucial to conduct thorough research and consider various factors before making any investment decisions.
