On June 16, 2023, Larry Berger, the Executive Vice President and Chief Technical Officer of Ecolab Inc (ECL, Financial), sold 21,708 shares of the company. Over the past year, Larry Berger has sold a total of 26,112 shares and has not purchased any shares.
Ecolab Inc is a global leader in water, hygiene, and infection prevention solutions and services. The company provides products and services to various industries, including food, healthcare, hospitality, and industrial markets. Its mission is to protect people and vital resources by delivering comprehensive solutions and on-site service to promote safe food, maintain clean environments, optimize water and energy use, and improve operational efficiencies for customers.
Insider Trends
The insider transaction history for Ecolab Inc reveals that there have been 6 insider buys in total over the past year. In contrast, there have been 12 insider sells during the same period.
The recent sale by Larry Berger could be an indication of a bearish sentiment among insiders. However, it is essential to consider other factors, such as the company's financial performance and overall market conditions, before drawing any conclusions.
Valuation
On the day of Larry Berger's recent sale, shares of Ecolab Inc were trading at $181.67 apiece, giving the stock a market cap of $51,830.604 billion.
The price-earnings ratio is 45.06, which is higher than the industry median of 19.4 and higher than the company's historical median price-earnings ratio.
With a price of $181.67 and a GuruFocus Value of $241.01, Ecolab Inc has a price-to-GF-Value ratio of 0.75. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that 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 sale of 21,708 shares by EVP & Chief Technical Officer Larry Berger may raise some concerns among investors. However, it is crucial to consider other factors, such as the company's valuation and overall market conditions, before making any investment decisions. Based on the GF Value, Ecolab Inc's stock appears to be modestly undervalued, which could present a potential opportunity for investors.
