GuruFocus - On August 28, 2024, Kenneth Seipel, Interim Chief Executive Officer of Citi Trends Inc (NASDAQ:CTRN), purchased 25,000 shares of the company at a price of $14.39 per share. This transaction was documented in a recent SEC Filing. Following this acquisition, the insider now owns a total of 282,139 shares of Citi Trends Inc.
Citi Trends Inc operates as a value-priced retailer of fashion apparel, accessories, and home goods. The company primarily targets African American and Latinx families in the United States.
Over the past year, Kenneth Seipel has been actively buying shares, with a total of 524,226 shares purchased and no shares sold. This recent purchase aligns with a broader trend of insider buying at the company. Over the last year, there have been 37 insider buys and only 1 insider sell at Citi Trends Inc.
Shares of Citi Trends Inc were trading at $14.39 on the day of the transaction, giving the company a market cap of approximately $122.999 million.
According to the GF Value, the intrinsic value of Citi Trends Inc is estimated at $24.61 per share, suggesting that the stock is currently undervalued with a price-to-GF-Value ratio of 0.58. This valuation indicates a Possible Value Trap, Think Twice scenario.
The GF Value is calculated based on historical multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted for the company's past performance and expected future business outcomes.
This insider buying activity could be a signal to investors about the perceived value of the stock at current prices, especially in the context of the company's overall insider transaction history and valuation metrics.
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.
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