Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On December 7, a substantial insider purchase was made by Jeffrey C Royal, Board Member at Boston Omaha (NYSE:BOC), as per the latest SEC filing.
What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Royal bought 10,000 shares of Boston Omaha, amounting to a total of $150,411.
Monitoring the market, Boston Omaha's shares up by 0.07% at $15.04 during Friday's morning.
Get to Know Boston Omaha Better Boston Omaha Corp is a US-based company which invests in real estate. Its operations include its ownership of multiple billboards in Florida, Georgia, Wisconsin, and Alabama and equity method investments in several real estate companies. The company operates three separate lines of business, outdoor billboard advertising, surety insurance and related brokerage activities, and broadband services. It also engages in investments in real estate management and related activities. The company generates the majority of the revenue from billboard rentals.
Boston Omaha: Financial Performance Dissected Revenue Growth: Over the 3 months period, Boston Omaha showcased positive performance, achieving a revenue growth rate of 14.46% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Evaluating Earnings Performance:
- Gross Margin: The company maintains a high gross margin of 67.44%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Boston Omaha's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.05.
Financial Valuation:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 751.5, Boston Omaha's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.9, Boston Omaha'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): Boston Omaha's EV/EBITDA ratio stands at 27.18, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
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The Impact of Insider Transactions on Investments Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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.
Navigating the World of Insider Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Boston Omaha's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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