Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on April 10, that Yee May Yap, SVP at Jabil (NYSE:JBL) executed a significant insider sell, according to an SEC filing.
What Happened: Yap's decision to sell 7,877 shares of Jabil was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,100,023.
At Thursday morning, Jabil shares are up by 0.13%, trading at $136.54.
All You Need to Know About Jabil Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions. It provides comprehensive electronics design, production and product management services to companies in various industries and end markets.The Company derives its revenue from providing comprehensive electronics design, production and product management services. It operates in two segments. The Electronics Manufacturing Services (EMS) segment, which is the key revenue driver, is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics. The Diversified Manufacturing Services (DMS) segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies, and healthcare.
Understanding the Numbers: Jabil's Finances Revenue Growth: Jabil's revenue growth over a period of 3 months has faced challenges. As of 29 February, 2024, the company experienced a revenue decline of approximately -16.81%. 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 Information Technology sector.
Interpreting Earnings Metrics:
- Gross Margin: The company faces challenges with a low gross margin of 9.31%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Jabil's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 7.41.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.82 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.56, 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): With an EV/EBITDA ratio lower than industry benchmarks at 5.83, Jabil presents an attractive value opportunity.
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The Impact of Insider Transactions on Investments Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
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.
Deciphering Transaction Codes in Insider Filings Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Jabil's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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