Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on May 15, Clifton McClelland III, SVP at Tegna (NYSE:TGNA), is reported in the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that III sold 54,093 shares of Tegna. The total transaction amounted to $853,587.
At Thursday morning, Tegna shares are down by 0.0%, trading at $15.24.
About Tegna Tegna Inc is a media company with a portfolio of broadcast stations and digital sites. The firm has television stations and radio stations in approximately U.S. markets. The company owns multicast networks of True Crime Network, Twist, and Quest. Each television station also has a robust digital presence across online, mobile, connected television, and social platforms, reaching consumers on all devices and platforms used to consume news content. It generates key revenue from advertising and marketing services, subscriptions, political advertising, and other services.
Breaking Down Tegna's Financial Performance Revenue Growth: Tegna's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -3.52%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Analyzing Profitability Metrics:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 39.72%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Tegna's EPS reflects a decline, falling below the industry average with a current EPS of 1.06.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 5.29 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.04 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tegna's EV/EBITDA ratio, surpassing industry averages at 5.27, positions it with an above-average valuation in the market.
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Illuminating the Importance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Breaking Down the Significance of Transaction Codes 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 Tegna's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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