On August 15, 2023, Samuel Wilson, CEO of 8x8 Inc (EGHT, Financial), sold 2,000 shares of the company's stock. This move is part of a larger trend of insider selling at the company, which we will explore in more detail below.
Who is Samuel Wilson?
Samuel Wilson is the CEO of 8x8 Inc, a leading provider of Voice over IP products. Wilson has been with the company for several years, guiding it through various stages of growth and development. His recent sale of 2,000 shares is noteworthy and warrants further analysis.
About 8x8 Inc
8x8 Inc is a technology company that specializes in Voice over IP (VoIP) products. The company offers a range of services, including cloud-based voice, contact center, video, mobile, and unified communications solutions for businesses. With a market cap of $419.208 million, 8x8 Inc is a significant player in the VoIP industry.
Insider Sell Analysis
Over the past year, Samuel Wilson has sold a total of 165,977 shares and purchased 0 shares. This recent sale of 2,000 shares is part of a larger trend of insider selling at 8x8 Inc. In fact, there have been 57 insider sells and 0 insider buys over the past year.
The above image shows the trend of insider selling at 8x8 Inc. The consistent selling by insiders could be a cause for concern for potential investors. It's important to note that insider selling doesn't always indicate a problem within a company. Insiders might sell for personal reasons or to diversify their investment portfolio. However, it's always a good idea to keep an eye on insider activity.
Stock Price and Valuation
On the day of Samuel Wilson’s recent sale, shares of 8x8 Inc were trading for $3.57. With a GuruFocus Value of $16.48, the stock has a price-to-GF-Value ratio of 0.22, indicating that it might be a possible value trap.
The GF Value is an intrinsic value estimate developed by GuruFocus. It's calculated based on historical multiples, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. In the case of 8x8 Inc, the low price-to-GF-Value ratio suggests that the stock might be undervalued, but potential investors should proceed with caution.
In conclusion, the recent insider selling at 8x8 Inc, including the sale of 2,000 shares by CEO Samuel Wilson, is a trend that potential investors should monitor closely. While the stock appears to be undervalued based on its GF Value, the consistent insider selling could be a red flag.
