Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Alessandro Silva, Chief Revenue Officer at ACI Worldwide (NASDAQ:ACIW), executed a substantial insider sell on December 6, according to an SEC filing.
What Happened: Silva's decision to sell 17,817 shares of ACI Worldwide was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $493,807.
The latest update on Thursday morning shows ACI Worldwide shares down by 0.0%, trading at $27.13.
About ACI Worldwide ACI Worldwide Inc develops, markets, and installs a portfolio of software products primarily focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but most of the revenue is generated in the United States and EMEA regions.
Financial Insights: ACI Worldwide Revenue Growth: Over the 3 months period, ACI Worldwide showcased positive performance, achieving a revenue growth rate of 18.4% as of 30 September, 2023. This reflects a substantial increase 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 Information Technology sector.
Insights into Profitability:
- Gross Margin: With a low gross margin of 51.07%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): ACI Worldwide's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.35.
Market Valuation:
- Price to Earnings (P/E) Ratio: ACI Worldwide's P/E ratio of 34.78 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.07, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 11.56, ACI Worldwide's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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Navigating the Impact of Insider Transactions on Investments Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Cracking Transaction Codes Examining transactions, investors often concentrate on those unfolding 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 ACI Worldwide's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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