Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on February 6, Gerben Bakker, Chairman at Hubbell (NYSE:HUBB), as per the latest SEC filing.
What Happened: Bakker's recent move involves selling 13,355 shares of Hubbell. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $4,716,051.
Hubbell's shares are actively trading at $350.65, experiencing a up of 0.11% during Wednesday's morning session.
About Hubbell 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.
Financial Milestones: Hubbell's Journey Revenue Growth: Hubbell's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -2.18%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 33.9%, 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 3.18, Hubbell showcases strong earnings per share.
Valuation Analysis:
- Price to Earnings (P/E) Ratio: The P/E ratio of 24.93 is lower than the industry average, implying a discounted valuation for Hubbell's stock.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.52 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 17.59, Hubbell demonstrates a robust market valuation, outperforming industry benchmarks.
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Why Insider Activity Matters in Finance Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
A Closer Look at Important Transaction Codes When dissecting transactions, the focal point for investors is often those occurring 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 Hubbell's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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