Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that Zachary Dickens, EVP at Extra Space Storage (NYSE:EXR) made a noteworthy insider purchase on March 6,.
What Happened: Dickens demonstrated confidence in Extra Space Storage by purchasing 5,704 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the transaction is $817,725.
Tracking the Wednesday's morning session, Extra Space Storage shares are trading at $143.63, showing 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.
Extra Space Storage's Economic Impact: An Analysis Revenue Growth: Extra Space Storage displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 57.44%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company excels with a remarkable gross margin of 72.9%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Extra Space Storage's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.02.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 30.08 is lower than the industry average, indicating potential undervaluation for the stock.
- 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): Extra Space Storage's EV/EBITDA ratio of 22.73 exceeds industry averages, indicating a premium valuation in the market
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Illuminating the Importance of Insider Transactions Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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 Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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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