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Sprouts Farmers Market Inc (SFM, Financials), a company specializing in fresh, natural and organic products at affordable prices, reported an insider sale, according to a recent SEC filing. HR Chief Timmi Zalatoris sold 5,353 shares of the company’s stock on March 20, 2024. The transaction was disclosed in a legal document filed with the U.S. Securities and Exchange Commission, which can be accessed through this SEC filing link. Over the past year, Timmi Zalatoris sold a total of 18,956 shares of Sprouts Farmers Market Inc stock and did not purchase any shares. This latest transaction continues a trend of insider selling in the company, which has seen a total of 38 insider sales in the past year, without any insider purchases.
Sprouts Farmers Market Inc’s shares were trading at $61.62 on the day recently when insiders were selling off shares, giving the company a market capitalization of $6.307 billion. The stock’s price-to-earnings ratio is 24.83, which is higher than the industry median of 16.12 and higher than the company’s historical price-to-earnings ratio median. Compared to the GuruFocus value (GF value) of $37.28, the stock’s valuation suggests that Sprouts Farmers Market Inc is significantly overvalued, with a market price to GF value ratio of 1.65.
The calculation of GF takes into account historical trading multiples such as price-to-earnings, price-to-sales, price-to-book and price-to-earnings versus free cash flow, as well as GuruFocus adjustment factors based on the company’s past returns and growth, as well as Morningstar analyst estimates of the business going forward. Performance forecasts. Investors often monitor insider sales as it can provide insight into what insiders think about the value of a company’s shares. However, it’s worth noting that insider selling does not always indicate a lack of confidence in the company, as insiders may sell shares for a variety of personal reasons.
This article was generated by GuruFocus and is intended to provide general insight and is not tailored financial advice. Our commentary is rooted in historical data and analyst forecasts, employs an unbiased methodology, and is not intended to serve as specific investment guidance. It does not make a recommendation to purchase or divest any stock and does not take into account personal investment objectives or financial situation. Our goal is to provide long-term, fundamental data-driven analysis. Please note that our analysis may not include the latest, price-sensitive company announcements or qualitative information. GuruFocus does not hold a position in the stocks mentioned in this article.
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