On September 11, 2023, John Zimmer, the Executive Vice President, Treasurer, Secretary, and Chief Financial Officer of Core Molding Technologies Inc (CMT, Financial), sold 5,087 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
Core Molding Technologies Inc is a manufacturer of sheet molding compound and a molder of fiberglass reinforced plastics. The company's products are used in a variety of markets, including medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products.
Over the past year, the insider has sold a total of 11,475 shares and purchased 2,500 shares. This recent sale represents a significant portion of the insider's transactions over the past year.
The insider transaction history for Core Molding Technologies Inc shows a trend of more sells than buys. Over the past year, there have been 4 insider buys and 14 insider sells. This could indicate that insiders believe the stock is overvalued at its current price.
On the day of the insider's recent sell, shares of Core Molding Technologies Inc were trading for $25.5 apiece, giving the stock a market cap of $221.873 million. The price-earnings ratio is 11.21, which is lower than the industry median of 22.45 and lower than the company’s historical median price-earnings ratio. This suggests that the stock is undervalued based on earnings.
However, with a price of $25.5 and a GuruFocus Value of $15.34, Core Molding Technologies Inc has a price-to-GF-Value ratio of 1.66. This means the stock is significantly overvalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the recent sell by the insider could be a signal that the stock is overvalued at its current price. Investors should keep an eye on the insider transactions and the company's fundamentals to make informed investment decisions.
