On August 11, 2023, John Malone, Chairman of the Board and 10% Owner of Liberty SiriusXM Group (LSXMA, Financial), sold 360,292 shares of the company. This move is part of a series of insider transactions that have taken place over the past year, which we will delve into in this article.
Who is John Malone?
John Malone is a renowned American businessman, known for his significant contributions to the telecommunications industry. He is currently the Chairman of the Board and a 10% owner of Liberty SiriusXM Group. Malone's business acumen and strategic leadership have been instrumental in the growth and success of the company.
About Liberty SiriusXM Group
Liberty SiriusXM Group, under the ticker LSXMA, is a leading player in the world of radio broadcasting. The company provides a platform for a variety of music, sports, news, talk, entertainment channels, and more. Its services are available in vehicles, smartphones, home devices, and online, reaching millions of subscribers across North America.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, John Malone has sold a total of 1,184,392 shares and purchased 140,000 shares. The recent sale of 360,292 shares is a significant transaction, and it's essential to consider this in the context of the overall insider trading trend for Liberty SiriusXM Group.
The company has seen 2 insider buys and 18 insider sells over the past year. This trend could indicate that insiders believe the stock is currently overvalued, leading to more sells than buys.
On the day of Malone's recent sale, Liberty SiriusXM Group shares were trading at $70.45, giving the company a market cap of $7.73 billion. The price-earnings ratio stands at 9.61, lower than both the industry median of 17.63 and the company's historical median price-earnings ratio. This could suggest that the stock is undervalued, despite the recent insider sells.
GF Value Analysis
According to the GuruFocus Value, the stock's price is $70.45, while its GF Value is $34.83. This gives Liberty SiriusXM Group a price-to-GF-Value ratio of 2.02, indicating that the stock might be a possible value trap. Investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, while the recent insider sell by John Malone is noteworthy, investors should also consider other factors such as the company's valuation, the overall insider trading trend, and the GF Value before making investment decisions.
