On May 22, 2023, President and CEO Neil Schrimsher sold 1,655 shares of Applied Industrial Technologies Inc (AIT, Financial), a leading industrial distributor in North America. The company specializes in providing a wide range of industrial products, including bearings, power transmission components, fluid power components, and other industrial supplies. With a strong presence in various industries, Applied Industrial Technologies Inc has established itself as a key player in the market.
Who is Neil Schrimsher?
Neil Schrimsher has been the President and CEO of Applied Industrial Technologies Inc since 2011. With extensive experience in the industrial distribution sector, Schrimsher has played a crucial role in the company's growth and expansion. Under his leadership, Applied Industrial Technologies Inc has continued to strengthen its market position and deliver value to its shareholders.
Insider Trading Analysis
Over the past year, Neil Schrimsher has sold a total of 23,181 shares and purchased 0 shares. This recent sale of 1,655 shares is part of a broader trend of insider selling at Applied Industrial Technologies Inc. In the past year, there have been 6 insider sells and 0 insider buys. This could indicate that insiders believe the stock is overvalued or that they are taking profits after a period of growth.
It is essential to analyze insider trading activity to understand the sentiment of company insiders regarding the stock's future performance. While insider selling can sometimes signal a lack of confidence in the company's prospects, it is also common for insiders to sell shares for personal reasons, such as diversifying their investment portfolio or meeting financial obligations.
Stock Price and Valuation
On the day of Neil Schrimsher's recent sale, shares of Applied Industrial Technologies Inc were trading at $130.01 apiece, giving the company a market capitalization of $4,872.74 million. The stock's price-earnings ratio is 14.81, which is higher than the industry median of 12.18 but lower than the company's historical median price-earnings ratio.
With a current price of $130.01 and a GuruFocus Value of $124.65, Applied Industrial Technologies Inc has a price-to-GF-Value ratio of 1.04. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using 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.
While the stock's current valuation suggests that it is fairly valued, investors should consider the broader context of insider trading activity and the company's financial performance. It is essential to conduct thorough research and analysis before making any investment decisions.
Conclusion
The recent insider sell by Neil Schrimsher, President and CEO of Applied Industrial Technologies Inc, is part of a broader trend of insider selling at the company. While this may raise concerns for some investors, it is essential to consider the stock's valuation and the company's financial performance before drawing any conclusions. Currently, the stock appears to be fairly valued based on its GF Value, but investors should continue to monitor insider trading activity and conduct their research to make informed decisions.
