Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on December 13, Soon Chai Gooi, SVP at Keysight Techs (NYSE:KEYS), as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Gooi executed a sale of 14,900 shares of Keysight Techs with a total value of $2,205,591.
Keysight Techs's shares are actively trading at $155.22, experiencing a up of 1.91% during Thursday's morning session.
About Keysight Techs Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
Understanding the Numbers: Keysight Techs's Finances Revenue Challenges: Keysight Techs's revenue growth over 3 months faced difficulties. As of 31 October, 2023, the company experienced a decline of approximately -5.14%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
- Gross Margin: The company excels with a remarkable gross margin of 64.38%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Keysight Techs's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.28.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: The P/E ratio of 25.77 is lower than the industry average, implying a discounted valuation for Keysight Techs's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 4.99 is above industry norms, reflecting an elevated valuation for Keysight Techs's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.88 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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Why Insider Transactions Are Important Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
The Insider's Guide to 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 Keysight Techs's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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