Western Midstream Partners LP (NYSE:WES), a company engaged in the gathering, processing, compressing, treating, and transporting natural gas, natural gas liquids, crude oil, and produced water for its customers, has reported an insider purchase that signals confidence in the company's stock. According to a recent SEC filing, Director Oscar Brown has acquired 7,000 shares of Western Midstream Partners LP on February 28, 2024.
Oscar Brown’s recent transaction reflects a continued pattern of investment in the company, with a total of 7,000 shares purchased over the past year and no shares sold during the same period.
The insider transaction history for Western Midstream Partners LP shows a balanced level of activity from insiders, with 2 insider buys and 2 insider sells recorded over the past year.
On the valuation front, Western Midstream Partners LP shares were trading at $33.75 on the day of the insider's purchase, bringing the company's market cap to $12.715 billion. The price-earnings ratio stands at 12.85, which is above the industry median of 10.26 but below the company's historical median price-earnings ratio.
Western Midstream Partners LP has a price-to-GF-Value ratio of 1.19, with a GF Value of $28.34, indicating that the stock is considered Modestly Overvalued according to GuruFocus' intrinsic value estimate.
The GF Value is determined by historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates provided by Morningstar analysts.
The insider's recent purchase could be interpreted as a sign of confidence in the future prospects of Western Midstream Partners LP, despite the stock's current valuation above its GF Value. Investors and analysts often monitor insider buying as it may suggest that those with the most knowledge of the company anticipate positive future developments or consider the stock undervalued.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
