Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider activity was disclosed on April 9, as POLK, Head Hyve Solutions at TD Synnex (NYSE:SNX), reported the exercise of a large sell of company stock options.
What Happened: POLK, Head Hyve Solutions at TD Synnex, exercised stock options for 20,000 shares of SNX stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $38.89 per share.
The Wednesday morning update indicates TD Synnex shares down by 1.49%, currently priced at $114.58. At this value, POLK's 20,000 shares are worth $1,513,800.
Get to Know TD Synnex Better TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem. The company aggregates and distributes IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. Its geographical segments include, the Americas, Europe, and APJ.
Unraveling the Financial Story of TD Synnex Decline in Revenue: Over the 3 months period, TD Synnex faced challenges, resulting in a decline of approximately -7.6% in revenue growth as of 29 February, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Key Profitability Indicators:
- Gross Margin: The company faces challenges with a low gross margin of 7.2%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): TD Synnex's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.94.
Financial Valuation:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.91 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.19, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 8.78, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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Illuminating the Importance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Exploring Key Transaction Codes Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 TD Synnex's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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