On May 24, 2023, Andrew Micheletti, Executive Vice President of Finance at Axos Financial Inc (AX, Financial), sold 5,000 shares of the company's stock. This move comes amidst a year of insider trading activity that has seen Micheletti sell a total of 50,000 shares and make no purchases. In this article, we will take a closer look at the company, its valuation, and the implications of this insider sell.
Who is Andrew Micheletti?
Andrew Micheletti serves as the Executive Vice President of Finance at Axos Financial Inc. He has been with the company since 2016 and has played a crucial role in the company's financial operations and growth. With his extensive experience in the financial industry, Micheletti has been instrumental in guiding Axos Financial Inc through various market conditions and ensuring its continued success.
Axos Financial Inc: Business Description
Axos Financial Inc is a financial services company that specializes in providing innovative banking and lending products to both consumers and businesses. The company operates primarily through its subsidiary, Axos Bank, which offers a wide range of financial products and services, including checking and savings accounts, mortgages, personal and business loans, and investment services. Axos Financial Inc is known for its commitment to delivering exceptional customer service and leveraging technology to create a seamless and efficient banking experience for its clients.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been 2 insider buys and 17 insider sells for Axos Financial Inc. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains on their investments. However, it is essential to consider the context of these transactions and the overall market conditions when evaluating their significance.
On the day of Andrew Micheletti's recent sell, Axos Financial Inc's stock was trading at $40.6 per share, giving the company a market capitalization of $2,431.301 million. The stock's price-earnings ratio stands at 8.94, which is higher than the industry median of 7.9 but lower than the company's historical median price-earnings ratio. This suggests that Axos Financial Inc's stock may be slightly overvalued compared to its industry peers but undervalued based on its historical performance.
According to GuruFocus, Axos Financial Inc has a price-to-GF-Value ratio of 0.76, with a GF Value of $53.31. This indicates that the stock is modestly undervalued based on its intrinsic value estimate. The GF Value is calculated using historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
Conclusion
Andrew Micheletti's recent sale of 5,000 shares of Axos Financial Inc may raise some eyebrows, especially considering his total sales of 50,000 shares over the past year. However, it is essential to consider the broader context of the company's valuation and market conditions when evaluating the implications of this insider sell.
Axos Financial Inc's stock appears to be modestly undervalued based on its GF Value, and its price-earnings ratio is slightly higher than the industry median but lower than its historical median. While the recent insider sell may be a cause for concern, it is crucial to keep an eye on the company's overall performance and market trends to make informed investment decisions.
