Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On June 21, Mark J Bonney, Board Member at Tile Shop Holdings (NASDAQ:TTSH) executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Bonney purchased 10,593 shares of Tile Shop Holdings, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $70,001.
Monitoring the market, Tile Shop Holdings's shares up by 0.72% at $7.02 during Friday's morning.
Delving into Tile Shop Holdings's Background Tile Shop Holdings Inc is a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. It manufactures its setting and maintenance materials, such as thinset, grout, and sealers. The company's primary market is retail sales to consumers, contractors, designers, and home builders. Natural stone products include marble, travertine, granite, quartz, sandstone, slate, and onyx tiles. Man-made products include ceramic, porcelain, glass, cement, wood look, metal and luxury vinyl tile.
Understanding the Numbers: Tile Shop Holdings's Finances Revenue Growth: Tile Shop Holdings's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -10.09%. 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 Consumer Discretionary sector.
Profitability Metrics: Unlocking Value
- Gross Margin: Achieving a high gross margin of 65.76%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Tile Shop Holdings's EPS reflects a decline, falling below the industry average with a current EPS of 0.04.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 33.2 suggests caution, as the stock may be overvalued in the eyes of investors.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.83, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 12.36 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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Illuminating the Importance of Insider Transactions While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
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.
The Insider's Guide to Important Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Tile Shop Holdings's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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