On September 13, 2023, Michael Farkas, the former Director Chairman & CEO of Blink Charging Co (BLNK, Financial), sold 78,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 1,516,998 shares and purchased none.
Blink Charging Co is a leading owner, operator, and provider of electric vehicle (EV) charging equipment and networked EV charging services. The company's principal line of products and services is its Blink EV charging network (the Blink Network), EV charging equipment, and EV charging services.
The insider's recent sell-off has raised eyebrows among investors and analysts, prompting a closer look at the relationship between insider trading and the stock's price.
The insider transaction history for Blink Charging Co shows a clear trend of more sells than buys over the past year. There have been 26 insider sells and only 1 insider buy during this period. This could indicate that insiders believe the stock is overvalued, leading them to sell their shares.
On the day of the insider's recent sell, shares of Blink Charging Co were trading at $3.7, giving the company a market cap of $249.886 million. However, the GuruFocus Value of the stock stands at $85.03, indicating a price-to-GF-Value ratio of 0.04. This suggests that the stock is a possible value trap, and investors should think twice before buying.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on 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, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell-off by the insider could be a warning sign for potential investors. Despite the company's promising business in the EV charging industry, the stock's current valuation and the insider's selling trend suggest that it might be overvalued. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
