On June 16, 2023, President and CEO Grumhaus David D Jr. bought 2,500 shares of Duff & Phelps Utility & Infrastructure Fund Inc. (DPG, Financial), a closed-end investment company that primarily invests in equity securities of domestic and foreign utility and infrastructure companies. This insider purchase comes as a positive signal for investors, as it indicates that the company's top executive has confidence in the future prospects of the business.
Grumhaus David D Jr. has been with Duff & Phelps Utility & Infrastructure Fund Inc. since its inception in 2011 and has over 30 years of experience in the investment management industry. He has a strong track record of managing portfolios focused on utilities and infrastructure investments, which makes his insider buying activity particularly noteworthy.
Over the past year, Grumhaus David D Jr. has purchased a total of 2,500 shares and has not sold any shares. This insider buying activity is part of a broader trend for Duff & Phelps Utility & Infrastructure Fund Inc., as there have been three insider buys in total over the past year, with no insider sells during the same timeframe.
The recent insider buying activity coincides with a relatively stable stock price for Duff & Phelps Utility & Infrastructure Fund Inc. Shares of the company were trading at $10.08 apiece on the day of Grumhaus David D Jr.'s recent buy, giving the stock a market cap of $386.106 million.
To assess the valuation of Duff & Phelps Utility & Infrastructure Fund Inc., we can look at 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 considering these factors, we can gain insight into whether Duff & Phelps Utility & Infrastructure Fund Inc. is currently undervalued or overvalued. If the stock is trading below its GF Value, it may represent a buying opportunity for investors, as the market has not yet fully recognized the company's intrinsic value. Conversely, if the stock is trading above its GF Value, it may be overvalued and could be due for a correction.
In conclusion, the recent insider buying activity by President and CEO Grumhaus David D Jr. is a positive signal for investors in Duff & Phelps Utility & Infrastructure Fund Inc. With a stable stock price and a market cap of $386.106 million, the company appears to be well-positioned for future growth. By analyzing the GF Value and other valuation metrics, investors can make informed decisions about whether to buy or sell shares of this utility and infrastructure-focused closed-end investment company.
