Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by Kirsten M Volpi, Board Member at Tetra Tech (NASDAQ:TTEK) was disclosed in a new SEC filing on February 8, as part of an insider exercise.
What Happened: Disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Volpi, Board Member at Tetra Tech, executed a strategic derivative sale. This involved exercising stock options for 500 shares of TTEK, resulting in a transaction value of $63,199.
The latest update on Thursday morning shows Tetra Tech shares down by 0.02%, trading at $174.35. At this price, Volpi's 500 shares are worth $63,199.
Get to Know Tetra Tech Better Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.
Financial Milestones: Tetra Tech's Journey Revenue Growth: Tetra Tech'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 37.27%. This indicates a substantial 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 Industrials sector.
Exploring Profitability:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 15.51%, indicating potential difficulties in maintaining 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 1.41, Tetra Tech showcases strong earnings per share.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The P/E ratio of 40.37 is lower than the industry average, implying a discounted valuation for Tetra Tech's stock.
- Price to Sales (P/S) Ratio: With a P/S ratio of 1.93 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): Boasting an EV/EBITDA ratio of 21.48, Tetra Tech demonstrates a robust market valuation, outperforming industry benchmarks.
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Why Insider Activity Matters in Finance Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Transaction Codes Worth Your Attention When analyzing transactions, investors tend to focus on those in the open market, 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 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 Tetra Tech's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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