Insider Buying: Gregory Volovik, President and CEO of Herco Companies Inc., acquired 2,357 shares.
On September 15, 2023, Hurco Companies Inc. (NASDAQ:HURC) President and CEO Gregory Volovik purchased 2,357 shares of the company’s stock, signaling a strong vote of confidence in the firm’s prospects. This article will highlight the details of this insider buying activity and its potential implications for investors.
Who is Gregory Volovik?
Gregory Volovik is Chairman and Chief Executive Officer of Herco Companies Inc. He has been with the company for many years, demonstrating a deep understanding of its operations and strategic direction. His recent purchase of Hurco shares underlines his confidence in the company’s future growth potential.
Herco Companies Inc. About this
Herco Companies Inc. is a global industrial technology company that specializes in the design, manufacturing, and sales of computerized (CNC) machine tools. Its products are sold under the Herco, Miltronics and Takumi brands. The company’s innovative machines are used by precision parts manufacturers in the aerospace, defense, medical device, energy, transportation and technology sectors.
insider buying analysis
In the last year, Gregory Volovik bought a total of 2,357 shares and sold 0 shares. This recent acquisition is a positive sign as it indicates insiders’ confidence in the company’s prospects.
The history of insider transactions for Hurco Companies Inc. shows a total of 3 insider purchases in the last year, with no insider sales recorded during the same time frame. This trend indicates positive sentiment among company insiders.
Insider Buying: Gregory Volovik, President and CEO of Herco Companies Inc., acquired 2,357 shares.
Insider buying often occurs before a stock price increases because it indicates that the people with the most intimate knowledge of the company’s operations see value at the current price. Therefore, insider’s recent purchases could be a positive sign for potential investors.
Evaluation
On the day of insider’s most recent purchases, shares of Herco Companies Inc. were trading at $21.3 per share, giving the company a market cap of $137.32 million.
The stock’s price-earnings ratio is 40.87, which is higher than the industry average of 21.79 and also higher than the company’s historical average price-earnings ratio. This shows that the stock is currently trading at a premium compared to its peers and its historical average.
However, with a price of $21.3 and a GuruFocus value of $28.80, Herco Companies Inc. has a price-to-GF-value ratio of 0.74. This indicates that the stock is modestly valued based on GF value.
Insider Buying: Gregory Volovik, President and CEO of Herco Companies Inc., acquired 2,357 shares.
GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on the historical multiples (price-earnings ratio, price-sales ratio, price-book ratio and price-to-free cash flow) at which the stock has traded, based on the company’s past returns. GuruFocus adjustment factors and Morningstar analysts’ growth and future projections of business performance.
In conclusion, Gregory Volovik’s recent insider buying activity, combined with the stock’s slight undervaluation based on its GF value, could make Herco Companies Inc. an attractive investment opportunity.
This article first appeared on GuruFocus.
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