Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on December 6, Wengen Alberta LP, 10% Owner at Laureate Education (NASDAQ:LAUR), executed a substantial insider sell as per the latest SEC filing.
What Happened: LP's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 720,741 shares of Laureate Education. The total transaction value is $9,410,342.
As of Wednesday morning, Laureate Education shares are down by 0.0%, currently priced at $13.1.
Unveiling the Story Behind Laureate Education Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico.
Unraveling the Financial Story of Laureate Education Revenue Growth: Over the 3 months period, Laureate Education showcased positive performance, achieving a revenue growth rate of 20.11% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Exploring Profitability:
- Gross Margin: With a low gross margin of 19.5%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): Laureate Education's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.23.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.15 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.46 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): At 6.97, Laureate Education's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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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.
Important Transaction Codes For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Laureate Education's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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