On June 2, 2023, Todd Schwartz, CEO and 10% Owner of OppFi Inc (OPFI, Financial), purchased 6,795 shares of the company. This recent insider buying activity has sparked interest among investors and analysts alike. In this article, we will take a closer look at Todd Schwartz, OppFi Inc's business, and analyze the relationship between insider buying/selling and the stock price.
Who is Todd Schwartz?
Todd Schwartz is the CEO and a 10% owner of OppFi Inc. He has been with the company since its inception and has played a crucial role in its growth and development. With extensive experience in the financial services industry, Schwartz has a deep understanding of the market and the company's operations.
OppFi Inc's Business Description
OppFi Inc is a leading financial technology platform that provides accessible and affordable financial products and services to everyday consumers. The company focuses on serving the underbanked and credit-challenged population, offering them an opportunity to build and maintain their credit scores. OppFi Inc's products include personal loans, credit cards, and financial education resources. The company's mission is to empower consumers to improve their financial health and achieve their financial goals.
Insider Buying and Selling Analysis
Over the past year, Todd Schwartz has purchased a total of 361,890 shares and has not sold any shares. This indicates a strong belief in the company's future prospects and growth potential. The insider transaction history for OppFi Inc shows that there have been 70 insider buys in total over the past year, while there have been 5 insider sells over the same timeframe.
The above insider trend image shows a clear pattern of insider buying, which is generally considered a positive signal for investors. This suggests that insiders believe the stock is undervalued and has the potential for growth. On the other hand, the limited number of insider sells indicates that insiders are holding onto their shares, expecting the stock price to appreciate in the future.
Stock Price and Valuation
Shares of OppFi Inc were trading for $2.1 apiece on the day of Todd Schwartz's recent buy. This gives the stock a market cap of $32.257 million.
The price-earnings ratio is 52.88, which is higher than the industry median of 12.84 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 valuation.
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.
Based on the GF Value image, the stock appears to be fairly valued, with a GF Value of $2.1, which is equal to the current stock price. This suggests that the stock may not be significantly overvalued or undervalued at this time.
Conclusion
The recent insider buying activity by Todd Schwartz, along with the overall trend of insider buying at OppFi Inc, indicates a positive outlook for the company's future prospects. While the stock's valuation may appear high compared to its industry peers and historical valuation, the GF Value suggests that it is fairly valued at its current price. Investors should keep a close eye on OppFi Inc and consider the insider buying activity as a positive signal for the stock's potential growth.
