Matthew Kulasa, SVP at WESCO Intl (NYSE:WCC), disclosed an insider sell on November 26, according to a recent SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Kulasa executed a sale of 278 shares of WESCO Intl with a total value of $57,995.
During Wednesday's morning session, WESCO Intl shares up by 1.9%, currently priced at $215.0.
Delving into WESCO Intl's Background
Wesco International is an industrial distributor that has three reportable segments, electrical and electronic solutions, communications and security solutions, and utility and broadband solutions. The company offers more than 1.5 million products to its 140,000 active customers through a distribution network of 800 branches, warehouses, and sales offices, including 43 distribution centers. Wesco generates approximately 74% of its sales in the United States, but it has a global reach, with operations in 50 other countries.
Financial Milestones: WESCO Intl's Journey
Revenue Growth: WESCO Intl's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -2.75%. 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 Industrials sector.
Analyzing Profitability Metrics:
Gross Margin: The company shows a low gross margin of 22.09%, suggesting potential challenges in cost control and profitability compared to its peers.
Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.87, WESCO Intl showcases strong earnings per share.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.12.
Financial Valuation:
Price to Earnings (P/E) Ratio: The current P/E ratio of 16.91 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
Price to Sales (P/S) Ratio: With a P/S ratio of 0.49 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): The company's EV/EBITDA ratio 10.12 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Unmasking the Significance of Insider Transactions
It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Unlocking the Meaning of 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 WESCO Intl'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.
