Revealing a significant insider sell on November 27, Colleen OSullivan, Chief Accounting Officer at Zebra Technologies (NASDAQ:ZBRA), as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, OSullivan sold 190 shares of Zebra Technologies. The total transaction value is $75,979.
Tracking the Thursday's morning session, Zebra Technologies shares are trading at $405.75, showing a up of 0.82%.
Discovering Zebra Technologies: A Closer Look
Zebra Technologies is a leading provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.
Financial Insights: Zebra Technologies
Revenue Growth: Zebra Technologies's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 31.28%. This signifies 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 Information Technology sector.
Key Insights into Profitability Metrics:
Gross Margin: The company maintains a high gross margin of 48.84%, indicating strong cost management and profitability compared to its peers.
Earnings per Share (EPS): Zebra Technologies's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.65.
Debt Management: Zebra Technologies's debt-to-equity ratio stands notably higher than the industry average, reaching 0.69. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Financial Valuation Breakdown:
Price to Earnings (P/E) Ratio: Zebra Technologies's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 54.68.
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.48 suggests overvaluation in the eyes of investors, considering sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 30.42 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Transactions Are Key in Investment Decisions
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Transaction Codes Worth Your Attention
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Zebra Technologies's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
