Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on May 1, that Jurgen Timperman, President at Carrier Global (NYSE:CARR) executed a significant insider sell, according to an SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Timperman executed a sale of 198,773 shares of Carrier Global with a total value of $12,302,251.
As of Thursday morning, Carrier Global shares are down by 0.61%, currently priced at $60.56.
All You Need to Know About Carrier Global Carrier Global manufactures heating, ventilation, and air conditioning, refrigeration, and fire and security products. The HVAC business serves both residential and commercial markets (HVAC segment sales mix is 60% commercial and 40% residential). Carrier's refrigeration segment consists of its transportation refrigeration, Sensitech supply chain monitoring, and commercial refrigeration businesses. The firm's fire and security business manufactures fire detection and suppression, access controls, and intrusion detection products. In April 2023, Carrier announced that it plans to divest its fire and security and commercial refrigeration businesses. The firm also acquired Germany-based Viessmann for approximately $13 billion.
Carrier Global's Economic Impact: An Analysis Revenue Growth: Over the 3 months period, Carrier Global showcased positive performance, achieving a revenue growth rate of 17.24% as of 31 March, 2024. This reflects a substantial 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 Industrials sector.
Key Profitability Indicators:
- Gross Margin: The company shows a low gross margin of 27.58%, suggesting potential challenges in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Carrier Global's EPS is below the industry average. The company faced challenges with a current EPS of 0.3. This suggests a potential decline in earnings.
Valuation Overview:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 42.74 suggests caution, as the stock may be overvalued in the eyes of investors.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.31, 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): Carrier Global's EV/EBITDA ratio of 22.95 exceeds industry averages, indicating a premium valuation in the market
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Uncovering the Importance of Insider Activity While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes To Focus On 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 Carrier Global's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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