Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On February 14, it was revealed in an SEC filing that Brian N Carter, SVP at Tetra Tech (NASDAQ:TTEK) executed a significant exercise of company stock options.
What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Carter, SVP at Tetra Tech, exercised stock options for 5,580 shares of TTEK, resulting in a transaction value of $712,621.
Tetra Tech shares are trading down 0.0% at $175.66 at the time of this writing on Wednesday morning. Since the current price is $175.66, this makes Carter's 5,580 shares worth $712,621.
About Tetra Tech Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.
Breaking Down Tetra Tech's Financial Performance Revenue Growth: Tetra Tech's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 37.27%. This indicates 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 Industrials sector.
Exploring Profitability:
- Gross Margin: The company shows a low gross margin of 15.51%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.41, Tetra Tech showcases strong earnings per share.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 40.69 is lower than the industry average, implying a discounted valuation for Tetra Tech's stock.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.94, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tetra Tech's EV/EBITDA ratio, surpassing industry averages at 21.63, positions it with an above-average valuation in the market.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Impact of Insider Transactions on Investments Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Exploring Key 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 Tetra Tech's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.