On May 23, 2023, Senior Executive Vice President and Chief Risk Officer Michael Karr sold 12,848 shares of Pacific Premier Bancorp Inc (PPBI, Financial). This transaction comes amidst a series of insider sells over the past year, with no insider buys recorded during the same period. In this article, we will take a closer look at Michael Karr's role in the company, Pacific Premier Bancorp Inc's business, and the relationship between insider transactions and the stock price.
Who is Michael Karr?
Michael Karr serves as the Senior Executive Vice President and Chief Risk Officer of Pacific Premier Bancorp Inc. In his role, Karr is responsible for overseeing the company's risk management strategies and ensuring compliance with regulatory requirements. With extensive experience in the financial industry, Karr plays a crucial role in the company's growth and stability.
Pacific Premier Bancorp Inc's Business Description
Pacific Premier Bancorp Inc is a regional bank holding company that operates primarily in Southern California. The company offers a wide range of banking services, including deposit products, commercial loans, real estate loans, and treasury management services. Pacific Premier Bancorp Inc focuses on serving small and medium-sized businesses, professionals, and individuals, providing them with tailored financial solutions and exceptional customer service.
Insider Transactions and Stock Price Relationship
Over the past year, Michael Karr has sold a total of 12,848 shares and purchased 0 shares. The insider transaction history for Pacific Premier Bancorp Inc reveals that there have been 0 insider buys and 6 insider sells in total over the past year. This trend may indicate that insiders believe the stock is overvalued or that they are taking profits off the table.
On the day of Michael Karr's recent sell, shares of Pacific Premier Bancorp Inc were trading at $20.53 apiece, giving the stock a market cap of $1,892.050 million. The price-earnings ratio is 6.74, which is lower than the industry median of 7.91 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its historical valuation.
With a price of $20.53 and a GuruFocus Value of $34.27, Pacific Premier Bancorp Inc has a price-to-GF-Value ratio of 0.6. This indicates that the stock is significantly undervalued 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.
In conclusion, the recent insider sell by SEVP & Chief Risk Officer Michael Karr may raise questions about the stock's valuation. However, the stock's current price-earnings ratio and price-to-GF-Value ratio suggest that it may be undervalued. Investors should carefully consider these factors and conduct further research before making any investment decisions regarding Pacific Premier Bancorp Inc.
