Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Douglas R. Rippel, Director at FirstCash Hldgs (NASDAQ:FCFS), executed a substantial insider sell on February 7, according to an SEC filing.
What Happened: Rippel's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 70,051 shares of FirstCash Hldgs. The total transaction value is $8,162,521.
As of Thursday morning, FirstCash Hldgs shares are down by 0.0%, currently priced at $116.05.
About FirstCash Hldgs FirstCash Holdings Inc operates pawn stores in the United States and Latin America. Its primary business involves making small loans secured by personal property. The the company has three reportable segments: U.S. pawn; Latin America pawn; and Retail POS payment solutions (AFF). It derives majority revenue from U.S. Pawn segment. These pawn loans give the borrower the option of either repaying the loans with interest or forfeiting the property without further penalty. Close to 30% of total company revenue comes from interest earned on the loans. Close to 70% of total revenue comes from reselling forfeited property in the company's retail stores.
Financial Insights: FirstCash Hldgs Revenue Growth: FirstCash Hldgs'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 13.72%. This indicates a substantial increase 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 Financials sector.
Navigating Financial Profits:
- Gross Margin: The company shows a low gross margin of 49.01%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): FirstCash Hldgs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.54272.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: FirstCash Hldgs's current Price to Earnings (P/E) ratio of 24.18 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.68 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 7.75, FirstCash Hldgs could be considered undervalued.
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Illuminating the Importance of Insider Transactions Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Important 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 FirstCash Hldgs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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