Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on December 19, Elan Moriah, President at Verint Systems (NASDAQ:VRNT), executed a substantial insider sell as per the latest SEC filing.
What Happened: Moriah's decision to sell 4,944 shares of Verint Systems was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $135,762.
At Wednesday morning, Verint Systems shares are down by 0.0%, trading at $28.1.
Unveiling the Story Behind Verint Systems Verint Systems Inc with its subsidiaries helps brands provide Boundless Customer Engagement. The company's solutions help iconic brands close the gap created when it lacks the resources required to deliver experiences that fulfill customer expectations. The operating business segments are Customer Engagement. Geographically, it derives a majority of its revenue from the United States.
Verint Systems: Financial Performance Dissected Revenue Challenges: Verint Systems's revenue growth over 3 months faced difficulties. As of 31 October, 2023, the company experienced a decline of approximately -2.95%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Insights into Profitability:
- Gross Margin: The company excels with a remarkable gross margin of 70.01%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Verint Systems's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.12.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 936.67, Verint Systems's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.06 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Verint Systems's EV/EBITDA ratio at 17.35 suggests potential undervaluation, falling below industry averages.
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The Impact of Insider Transactions on Investments Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Transaction Codes Worth Your Attention In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Verint Systems's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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