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On September 13, 2023, Samuel Shimer, a director at Heritage Global Inc (NASDAQ:HGBL), purchased 10,000 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
Samuel Shimer is a seasoned executive with a wealth of experience in the financial sector. His decision to increase his stake in Heritage Global Inc is a strong vote of confidence in the company's prospects.
Heritage Global Inc is a leader in corporate and financial asset liquidation transactions, valuations, and advisory services. The company assists its clients in the acquisition, disposition, and valuation of their physical and intangible assets. With a market cap of $113.664 million, Heritage Global Inc operates in a niche market, providing unique services to its clients.
Over the past year, the insider has purchased a total of 10,000 shares and sold 0 shares. This trend of buying without selling indicates a strong belief in the company's potential.
The insider transaction history for Heritage Global Inc shows a total of 10 insider buys and 12 insider sells over the past year. Despite the higher number of sells, the insider's recent purchase is a positive sign.
On the day of the insider's recent buy, shares of Heritage Global Inc were trading for $2.95 each. This price gives the stock a price-earnings ratio of 6.38, which is lower than both the industry median of 18.38 and the companys historical median price-earnings ratio. This suggests that the stock may be undervalued.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Heritage Global Inc is modestly undervalued. With a price of $2.95 and a GuruFocus Value of $3.62, the stock has a price-to-GF-Value ratio of 0.81.
In conclusion, the insider's recent purchase of 10,000 shares of Heritage Global Inc, combined with the stock's modest undervaluation, suggests a positive outlook for the company. Investors should keep a close eye on further insider transactions as they can provide valuable insights into the company's future performance.
This article first appeared on GuruFocus.