Avery Dennison Corp (NYSE:AVY), a global materials science company specializing in the design and manufacture of a wide variety of labeling and functional materials, has reported an insider selling event. According to a recent SEC filing, Senior Vice President and Chief Legal Officer Ignacio Walker sold 5,000 shares of the company on February 26, 2024.
The transaction was executed at an average price of $213.9 per share, resulting in a total sale amount of $1,069,500. Following this transaction, the insider's stake in Avery Dennison Corp has decreased, reflecting a change in the insider's investment in the company.
Over the past year, Ignacio Walker has engaged in multiple transactions involving the company's stock. The insider has sold a total of 5,403 shares and has not made any purchases of Avery Dennison Corp stock during this period.
The insider transaction history for Avery Dennison Corp shows a pattern of selling activity among insiders. There have been no insider buys recorded over the past year, while there have been 8 insider sells in the same timeframe, indicating a trend of insiders decreasing their holdings in the company.
On the valuation front, Avery Dennison Corp's shares were trading at $213.9 on the day of Ignacio Walker's recent sale, giving the company a market capitalization of $17.256 billion. The price-earnings ratio stands at 34.52, which is above both the industry median of 17.465 and the company's historical median price-earnings ratio, suggesting a higher valuation compared to its peers and its own past trading history.
The stock's price-to-GF-Value ratio is currently at 1.17, with a GF Value of $182.37, indicating that Avery Dennison Corp is considered Modestly Overvalued based on GuruFocus's intrinsic value estimate. The GF Value is determined by historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into how the company's executives and directors view the stock's valuation and future prospects. While insider selling does not always indicate a lack of confidence in the company, it is one of many factors market participants may consider when evaluating an investment in Avery Dennison Corp.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
