On September 5, 2023, Francois Locoh-donou, the President, CEO & Director of F5 Inc (FFIV, Financial), sold 2,200 shares of the company. This move is part of a series of transactions the insider has made over the past year, which have seen him sell a total of 23,910 shares and purchase none.
Francois Locoh-donou has been with F5 Inc since 2017, bringing with him a wealth of experience from his previous roles at Ciena Corporation and other tech companies. Under his leadership, F5 Inc has continued to grow and innovate in the application services and software sector.
F5 Inc is a global company that specializes in application services and application software. The company's products ensure that applications are always secure and perform the way they should—in any environment and on any device. F5's portfolio of automation, security, performance, and insight capabilities empowers its customers to create, secure, and operate adaptive applications that reduce costs, improve operations, and better protect users.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 31 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of F5 Inc were trading for $164.84 each, giving the company a market cap of $9.516 billion. This price represents a price-earnings ratio of 29.12, which is higher than both the industry median of 27.86 and the company's historical median price-earnings ratio.
Despite this, F5 Inc appears to be modestly undervalued based on its GuruFocus Value of $185.49 and a price-to-GF-Value ratio of 0.89. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value for F5 Inc is shown in the following image:
The insider's decision to sell shares could be influenced by a variety of factors. It's important for investors to consider the broader context of the company's performance, valuation, and insider trading trends when making investment decisions. Despite the insider's recent sell, the company's modest undervaluation and strong performance in the application services and software sector may still make it an attractive investment opportunity.
