Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On June 6, Katharine Weymouth, Board Member at Republic Servs (NYSE:RSG) executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: Weymouth demonstrated confidence in Republic Servs by purchasing 540 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the transaction is $100,040.
The latest update on Friday morning shows Republic Servs shares up by 0.38%, trading at $187.78.
About Republic Servs Republic Services is the second-largest integrated provider of traditional solid waste services in the United States, operating roughly 207 active landfills and 246 transfer stations. The company serves residential, commercial, and industrial end markets. It also runs a sizable recycling operation in North America.
Republic Servs's Economic Impact: An Analysis Revenue Growth: Republic Servs displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 7.85%. This indicates a notable 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 Industrials sector.
Profitability Metrics:
- Gross Margin: Achieving a high gross margin of 40.88%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Republic Servs's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.44.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 32.82, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.88 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 16.22, Republic Servs presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
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Why Insider Transactions Are Important Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
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.
Essential Transaction Codes Unveiled 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 Republic Servs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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