Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on April 30, by Christian Lucky, SVP at Greenbrier Companies (NYSE:GBX), based on the recent SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Lucky sold 1,454 shares of Greenbrier Companies. The total transaction value is $76,977.
During Wednesday's morning session, Greenbrier Companies shares down by 0.0%, currently priced at $49.39.
Get to Know Greenbrier Companies Better Greenbrier Companies Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Maintenance Services and Leasing & Management Services. The company generates a majority of its revenue from the manufacturing segment. Geographically, it derives a majority of revenue from the United States.
Greenbrier Companies: A Financial Overview Revenue Growth: Greenbrier Companies's revenue growth over a period of 3 months has faced challenges. As of 29 February, 2024, the company experienced a revenue decline of approximately -23.11%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Holistic Profitability Examination:
- Gross Margin: The company shows a low gross margin of 14.16%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Greenbrier Companies's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.08.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 14.57, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.44, 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.96, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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Delving Into the Significance of Insider Transactions Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
The Insider's Guide to Important Transaction Codes In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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 Greenbrier Companies's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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