Time To Pick Up Shares of Revolution Lighting? Its Execs Think So
Finbox io | Feb 01, 2018 06:26PM ET
Recent insider buying reveals a stock trading at an attractive valuation.h3 Insider Buying: Revolution Lighting/h3
Two top executives have been buying shares of Revolution Lighting Technologies (NASDAQ:RVLT) according to MarketBeat : Robert Lapenta (Chairman, CEO and President) and James Depalma (CFO). Total insider buying from these two individuals has totaled $3.8 million since mid-January which is approximately 4.6% of Revolution Lighting’s total market capitalization.
Revolution Lighting manufactures and sells lighting solutions focusing on the industrial, commercial, and government markets in the United States, Canada, and internationally. The company was founded in 1991 and is headquartered in Stamford, Connecticut.
The company’s shares last traded at $4.30 as of Thursday, down -45.3% over the last year. While the stock has lost significant value, the recent insider transactions could signal a promising road ahead for shareholders
In addition, finbox.io’s average fair value estimate of $5.18 implies 20.6% upside which is calculated from 2 valuation models as shown in the table below.
What’s interesting is that the Earnings Power Value analysis offers nearly 5% upside relative to its current trading price. This model is typically used as a quick way to get a sense of the risk of investing in a company at the current price. It was popularized by Professor Bruce Greenwald in the book Value Investing. The approach is most often used as a “downside case” because it assumes no growth in the subject company’s current earnings.
It appears the market may be undervaluing shares of Revolution Lighting. The company’s top executives certainly believe this is the case.
Note that while insider activity on its own is not necessarily a buy or sell signal, it may offer insight into how ownership and management feel about a company’s future prospects. Keeping an eye on the activities of insiders and institutions can help investors make more informed investment decisions.
Article originally published at finbox.io .
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