Benzinga - by Benzinga Insights, Benzinga Staff Writer.
onathan M. Del Nero, Vice President at Hubbell (NYSE:HUBB), executed a substantial insider sell on February 6, according to an SEC filing.
What Happened: Nero's decision to sell 1,098 shares of Hubbell was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $387,303.
As of Wednesday morning, Hubbell shares are up by 0.11%, currently priced at $350.65.
Get to Know Hubbell Better Hubbell is a diversified conglomerate industrial company that mostly competes in the electrical components market. Its products and services serve vital portions of the U.S. electrical supply chain, including transmission and distribution as well as the commercial, industrial, and residential end markets. The company organizes its business into two segments: electrical and power systems. The consolidated business sells about two thirds of its products via distributors, with the remainder sold via direct sales to utilities and contractors. The 2018 acquisition of Aclara, folded into the utility solutions segment, brought Hubbell a portfolio of smart meters and communication sensors that serves electrical, water, and gas utilities.
Hubbell: A Financial Overview Revenue Challenges: Hubbell's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -2.18%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Holistic Profitability Examination:
- Gross Margin: The company shows a low gross margin of 33.9%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.18, Hubbell showcases strong earnings per share.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.93, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 3.52 is above industry norms, reflecting an elevated valuation for Hubbell's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 17.59 positions the company as being more valued compared to industry benchmarks.
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Navigating the Impact of Insider Transactions on Investments Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
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.
Cracking Transaction Codes Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Hubbell's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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