On June 4, 2023, President, CEO & Chairman, 10% Owner Seth Ravin sold 21,234 shares of Rimini Street Inc (RMNI, Financial). Seth Ravin is the founder of Rimini Street Inc, a leading global provider of enterprise software products and services. The company offers third-party support and maintenance services for Oracle and SAP software products, as well as Microsoft SQL Server and IBM Db2 databases.
Seth Ravin's Insider Trades
Over the past year, Seth Ravin has sold a total of 830,390 shares and purchased 0 shares. This recent sale of 21,234 shares is part of a larger trend of insider selling for Rimini Street Inc.
Insider Trends
The insider transaction history for Rimini Street Inc shows that there have been 0 insider buys in total over the past year. Meanwhile, there have been 36 insider sells over the same timeframe. This trend suggests that insiders may have a bearish outlook on the company's future performance.
Valuation
Shares of Rimini Street Inc were trading for $4.28 apiece on the day of Seth Ravin's recent sale. This gives the stock a market cap of $398.335 million.
With a price of $4.28 and a GuruFocus Value of $5.94, Rimini Street Inc has a price-to-GF-Value ratio of 0.72. 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.
Considering the insider selling trend and the stock's current valuation, investors should approach Rimini Street Inc with caution. While the stock may be modestly undervalued based on its GF Value, the consistent insider selling could be a warning sign for the company's future performance. It is essential for investors to conduct thorough research and consider other factors, such as the company's financial health and competitive position, before making any investment decisions.
In conclusion, the recent insider sell by Seth Ravin, along with the overall insider selling trend for Rimini Street Inc, may raise concerns for potential investors. However, the stock's modest undervaluation based on its GF Value could still present an opportunity for those who believe in the company's long-term prospects. As always, investors should carefully consider all available information and perform their due diligence before making any investment decisions.
