On June 20, 2023, Tom Kubota, CEO, President, and 10% Owner of Pacific Health Care Organization Inc (PFHO, Financial), purchased 37,000 shares of the company. This recent acquisition is part of a series of insider buys by Kubota, who has bought a total of 82,000 shares over the past year and sold none.
Pacific Health Care Organization Inc is a specialty workers' compensation managed care company that provides a range of services for self-administered employers, insurers, and third-party administrators. The company's services include utilization review, medical bill review, nurse case management, and provider network management, among others.
Insider Trends
The insider transaction history for Pacific Health Care Organization Inc reveals a total of 5 insider buys over the past year, with no insider sells during the same period. This trend suggests a positive sentiment among the company's insiders, as they continue to invest in the stock.
Valuation
On the day of Tom Kubota's recent purchase, shares of Pacific Health Care Organization Inc were trading at $0.87 apiece, giving the stock a market cap of $12.672 million.
The price-earnings ratio for the stock is 33.00, which is higher than the industry median of 20.23 and higher than the company's historical median price-earnings ratio. This indicates that the stock may be overvalued compared to its peers and its own historical valuation.
With a price of $0.87 and a GuruFocus Value of $0.85, Pacific Health Care Organization Inc has a price-to-GF-Value ratio of 1.02. This means the stock is modestly overvalued 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 insider buying activity by Tom Kubota, along with the overall positive trend of insider buys over the past year, suggests that the company's insiders have confidence in the future prospects of Pacific Health Care Organization Inc. However, the stock's current valuation indicates that it may be modestly overvalued. Investors should carefully consider these factors before making any investment decisions regarding PFHO.
