Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on May 7, Elizabeth A Bauer, EVP at CSG Systems Intl (NASDAQ:CSGS), is reported in the latest SEC filing.
What Happened: Bauer's decision to sell 1,073 shares of CSG Systems Intl was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $56,965.
The latest update on Wednesday morning shows CSG Systems Intl shares down by 0.0%, trading at $41.93.
Get to Know CSG Systems Intl Better CSG Systems International Inc is a purpose-driven, SaaS platform company that enables companies in a wide variety of industry verticals to tackle the growing complexity of business in the digital age. The company's cloud-first architecture and customer-centric approach empower companies to deliver unforgettable experiences for B2B (business-to-business), B2C (business-to-consumer), and B2B2X (business-to-business-to-consumer) customers, making it easier for people and businesses to connect to, use and pay for the services the company offers. The company operates in one segment i.e. Solutions and Services. Geographically, the company generates revenue from Americas (principally the U.S.).
CSG Systems Intl's Economic Impact: An Analysis Revenue Challenges: CSG Systems Intl's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.21%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Analyzing Profitability Metrics:
- Gross Margin: The company maintains a high gross margin of 46.5%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): CSG Systems Intl's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.68.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.08, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.07 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): The company's EV/EBITDA ratio 8.87 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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Why Insider Transactions Are Important It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
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.
A Deep Dive into Insider Transaction Codes When analyzing transactions, investors tend to focus on those in the open market, 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 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 CSG Systems Intl's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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