On August 30, 2023, Alison Rand, the Executive VP and CFO of Primerica Inc (PRI, Financial), sold 3,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 18,800 shares and purchased none.
Alison Rand is a key figure at Primerica Inc, a leading provider of financial services to middle-income households in the United States and Canada. The company assists its clients in meeting their needs for term life insurance, mutual funds, annuities, and other financial products. As the CFO, Rand plays a crucial role in the financial management and strategic planning of the company.
The insider transaction history for Primerica Inc shows a clear trend. Over the past year, there have been no insider buys, but there have been 20 insider sells. This could indicate that insiders believe the stock is currently overvalued.
On the day of the insider's recent sell, shares of Primerica Inc were trading for $202.26 apiece, giving the stock a market cap of $7.214 billion. The price-earnings ratio is 16.03, which is higher than both the industry median of 12.14 and the company’s historical median price-earnings ratio. This suggests that the stock may be overpriced compared to its earnings.
The GuruFocus Value for Primerica Inc is $181.16, resulting in a price-to-GF-Value ratio of 1.12. This indicates that the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell by Alison Rand, along with the overall trend of insider sells at Primerica Inc, could be a signal that the stock is currently overvalued. Investors should consider this information when making their investment decisions.
