Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Matthew Herrington, EVP & COO at Extra Space Storage (NYSE:EXR), disclosed an insider purchase on March 6, based on a new SEC filing.
What Happened: Herrington's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 5,318 shares of Extra Space Storage. The total transaction value is $762,388.
In the Wednesday's morning session, Extra Space Storage's shares are currently trading at $143.63, experiencing a up of 0.74%.
All You Need to Know About Extra Space Storage Extra Space Storage is a fully integrated real estate investment trust that owns, operates, and manages almost 3,600 self-storage properties in 42 states, with over 270 million net rentable square feet of storage space. Of these properties, approximately one half is wholly owned, while some facilities are owned through joint ventures and others are owned by third parties and managed by Extra Space Storage in exchange for a management fee.
Financial Milestones: Extra Space Storage's Journey Revenue Growth: Over the 3 months period, Extra Space Storage showcased positive performance, achieving a revenue growth rate of 57.44% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.
Key Profitability Indicators:
- Gross Margin: Achieving a high gross margin of 72.9%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.02, Extra Space Storage showcases strong earnings per share.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 30.08 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 9.42, Extra Space Storage's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 22.73 reflects market recognition of Extra Space Storage's value, positioning it as more highly valued compared to industry peers.
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Illuminating the Importance of Insider Transactions 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.
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.
Deciphering Transaction Codes in Insider Filings 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 Extra Space Storage's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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