Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on May 6, by Robert Joseph Deshaies, COO at WEX (NYSE:WEX), based on the recent SEC filing.
What Happened: Deshaies's recent move involves selling 1,897 shares of WEX. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $400,285.
The latest update on Tuesday morning shows WEX shares down by 0.0%, trading at $209.39.
Delving into WEX's Background WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the largest segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.
WEX's Financial Performance Revenue Growth: WEX's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.65%. This signifies a substantial increase 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 Financials sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company sets a benchmark with a high gross margin of 59.06%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): WEX's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.57.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 34.05 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a P/S ratio of 3.48 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): WEX's EV/EBITDA ratio, lower than industry averages at 10.32, indicates attractively priced shares.
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The Impact of Insider Transactions on Investments Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On Examining transactions, investors often concentrate on those unfolding 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 WEX's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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