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 purchase none. 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's 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 internet-based platform, which allows it to offer a wide range of financial products and services, including checking and savings accounts, mortgages, personal and business loans, and investment services. Axos Financial Inc prides itself on its commitment to customer service, competitive rates, and innovative product offerings that cater to the evolving needs of 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.
Valuation
On the day of Andrew Micheletti's recent sell, shares of Axos Financial Inc were trading at $40.6 apiece, giving the stock a market cap of $2,431.301 million. The price-earnings ratio stands at 8.94, which is higher than the industry median of 7.91 but lower than the company's historical median price-earnings ratio.
With a current price of $40.6 and a GuruFocus Value of $53.33, Axos Financial Inc has a price-to-GF-Value ratio of 0.76. This indicates that the stock is modestly 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 Andrew Micheletti may raise some concerns among investors. However, it is essential to consider the broader context of the company's valuation and overall market conditions. Axos Financial Inc's stock is currently trading at a modestly undervalued level, which may present an opportunity for investors looking to capitalize on the company's growth potential. As always, it is crucial to conduct thorough research and consider various factors before making any investment decisions.
