On May 30, 2023, President and CEO David Hedges of Auburn National Bancorp Inc (AUBN, Financial) purchased 999 shares of the company's stock. This move comes as part of a broader trend of insider buying at the company, with 21 insider buys over the past year and no insider sells during the same period. In this article, we will take a closer look at David Hedges, Auburn National Bancorp Inc, and the relationship between insider transactions and stock price.
Who is David Hedges?
David Hedges serves as the President and CEO of Auburn National Bancorp Inc. He has been with the company for several years and has played a significant role in its growth and development. Under his leadership, the company has continued to expand its operations and improve its financial performance.
About Auburn National Bancorp Inc
Auburn National Bancorp Inc is a bank holding company that operates through its subsidiary, AuburnBank. The company provides a wide range of banking services, including personal and business banking, loans, and wealth management services. With a focus on serving the communities in which it operates, Auburn National Bancorp Inc has built a strong reputation for its commitment to customer service and community involvement.
David Hedges's Trades and Insider Buying Analysis
Over the past year, David Hedges has purchased a total of 1099 shares of Auburn National Bancorp Inc and has not sold any shares. This recent purchase of 999 shares is a strong indication of his confidence in the company's future prospects and performance.
As mentioned earlier, there have been 21 insider buys in total over the past year, with no insider sells. This trend suggests that insiders at Auburn National Bancorp Inc have a positive outlook on the company's future and believe that the stock is undervalued at its current price.
Stock Price and Valuation
On the day of David Hedges's recent purchase, shares of Auburn National Bancorp Inc were trading at $22 apiece, giving the stock a market cap of $77.849 million. The price-earnings ratio of 7.64 is lower than the industry median of 7.89 and lower than the company's historical median price-earnings ratio, suggesting that the stock is undervalued compared to its peers and its own historical valuation.
With a price of $22 and a GuruFocus Value of $37.33, Auburn National Bancorp Inc has a price-to-GF-Value ratio of 0.59. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, which is calculated based on 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 buying activity at Auburn National Bancorp Inc, particularly the purchase of 999 shares by President and CEO David Hedges, suggests that insiders have a positive outlook on the company's future and believe that the stock is undervalued at its current price. Investors may want to consider this insider buying trend and the stock's attractive valuation when making investment decisions.
