Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on May 8, Amanda Hodges, EVP at Republic Servs (NYSE:RSG), as per the latest SEC filing.
What Happened: Hodges opted to sell 6,500 shares of Republic Servs, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $1,209,130.
As of Wednesday morning, Republic Servs shares are up by 0.14%, currently priced at $188.82.
Unveiling the Story Behind Republic Servs Republic Services is the second-largest integrated provider of traditional solid waste services in the United States, operating roughly 207 active landfills and 246 transfer stations. The company serves residential, commercial, and industrial end markets. It also runs a sizable recycling operation in North America.
Financial Insights: Republic Servs Revenue Growth: Republic Servs's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 7.85%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Exploring Profitability:
- Gross Margin: The company maintains a high gross margin of 40.88%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Republic Servs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.44.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 33.08 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.91, Republic Servs's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 16.33 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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Illuminating the Importance of Insider Transactions Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Transaction Codes To Focus On Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Republic Servs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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