Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On December 4, it was revealed in an SEC filing that Kurt Gallo, Senior Vice President at Crane NXT (NYSE:CXT) executed a significant exercise of company stock options.
What Happened: In an insider options sale disclosed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, Gallo, Senior Vice President at Crane NXT, exercised stock options for 11,920 shares of CXT. The transaction value amounted to $250,992.
Crane NXT shares are trading down 0.0% at $53.15 at the time of this writing on Tuesday morning. Since the current price is $53.15, this makes Gallo's 11,920 shares worth $250,992.
Unveiling the Story Behind Crane NXT Crane NXT Co is a premier industrial technology company that provides proprietary and trusted technology solutions to secure, detect, and authenticate what matters most to its customers. It is a pioneer in advanced, proprietary micro-optics technology for securing physical products, and its sophisticated electronic equipment and associated software leverages proprietary core capabilities with detection and sensing technologies.
Financial Insights: Crane NXT Revenue Growth: Crane NXT displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 5.31%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company maintains a high gross margin of 46.9%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.91, Crane NXT showcases strong earnings per share.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 7.6, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.89, 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 4.88, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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Why Pay Attention to Insider Transactions Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
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 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 Crane NXT's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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