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 and fixed income securities of domestic and foreign utility and infrastructure companies. This insider purchase is worth noting as it may signal confidence in the company's future prospects and performance.
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, making 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 indicates a positive sentiment towards the company's stock and its potential for growth.
Insider Trends
The insider transaction history for Duff & Phelps Utility & Infrastructure Fund Inc. shows a total of 3 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders are confident in the company's prospects and are accumulating shares for potential future gains.
Valuation
Shares of Duff & Phelps Utility & Infrastructure Fund Inc. 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.
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 these factors, the GF Value for Duff & Phelps Utility & Infrastructure Fund Inc. suggests that the stock may be undervalued at its current price. This, combined with the recent insider buying activity, could indicate a potential opportunity for investors to capitalize on the stock's potential upside.
Conclusion
Insider buying activity, particularly by a company's President and CEO, can be a strong indicator of confidence in the company's future performance. In the case of Duff & Phelps Utility & Infrastructure Fund Inc., Grumhaus David D Jr.'s recent purchase of 2,500 shares, along with the overall positive insider buying trend over the past year, suggests that the stock may be poised for growth. Coupled with the stock's potentially undervalued status based on the GF Value, investors may want to consider DPG as a potential addition to their portfolios.
As always, it is essential for investors to conduct their research and analysis before making any investment decisions. While insider buying can be a positive signal, it is only one piece of the puzzle when evaluating a stock's potential performance. Investors should also consider factors such as the company's financial health, industry trends, and overall market conditions before making any investment decisions.
