On September 8, 2023, Craig Nix, the CFO of First Citizens BancShares Inc (FCNCA, Financial), purchased 5 shares of the company. This move by the insider has sparked interest in the financial community and warrants a closer look.
Who is Craig Nix?
Craig Nix is the Chief Financial Officer of First Citizens BancShares Inc. He has been with the company for several years and has a deep understanding of the company's financial operations. His role involves overseeing the company's financial planning, reporting, and investment decisions. His insider trading activities provide valuable insights into the company's financial health and future prospects.
About First Citizens BancShares Inc
First Citizens BancShares Inc is a bank holding company based in the United States. The company provides a wide range of financial services including retail and commercial banking, wealth management, and insurance services. Its operations are spread across several states, serving a diverse customer base. The company is known for its strong customer focus and commitment to providing high-quality financial solutions.
Insider Buying Analysis
Over the past year, the insider has purchased a total of 145 shares and has not sold any shares. This recent purchase of 5 shares by the insider is a positive signal as it indicates confidence in the company's future prospects.
The insider transaction history for First Citizens BancShares Inc shows a total of 6 insider buys over the past year, compared to 2 insider sells. This trend suggests that insiders are bullish about the company's stock.
The relationship between insider buying/selling and stock price is often considered a reliable indicator of a company's future performance. In this case, the consistent insider buying activity could be a positive sign for the company's stock price.
Valuation
On the day of the insider's recent buy, shares of First Citizens BancShares Inc were trading at $1,324.12, giving the company a market cap of $19.13 billion.
The stock's price-earnings ratio is 1.80, which is lower than both the industry median of 8.25 and the company's historical median price-earnings ratio. This suggests that the stock is currently undervalued.
The stock's price-to-GF-Value ratio is 0.72, based on a GuruFocus Value of $1,831.17. This indicates that the stock is modestly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. In this case, the GF Value suggests that First Citizens BancShares Inc's stock is a good investment opportunity at its current price.
In conclusion, the insider's recent purchase, along with the company's strong financials and undervalued stock, make First Citizens BancShares Inc a company to watch in the financial sector.
