Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Donald Klimoski II, General Counsel at Global Self Storage (NASDAQ:SELF), disclosed an insider purchase on March 26, based on a new SEC filing.
What Happened: II demonstrated confidence in Global Self Storage by purchasing 23,461 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $101,351.
The latest update on Wednesday morning shows Global Self Storage shares down by 1.13%, trading at $4.38.
Delving into Global Self Storage's Background Global Self Storage Inc is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. It has one segment of Rental operations. Through its wholly-owned subsidiaries, the company owns and/or manages close to 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.
Financial Insights: Global Self Storage Revenue Growth: Global Self Storage displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 0.13%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Interpreting Earnings Metrics:
- Gross Margin: The company shows a low gross margin of 62.36%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): With an EPS below industry norms, Global Self Storage exhibits below-average bottom-line performance with a current EPS of 0.02.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: Global Self Storage's P/E ratio of 22.15 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: With a P/S ratio of 4.0 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 12.13, Global Self Storage could be considered undervalued.
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The Relevance of Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Deep Dive into 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 Global Self Storage's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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