Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Michael Urban, Americas President at TD Synnex (NYSE:SNX), disclosed an insider sell on January 23, according to a recent SEC filing.
What Happened: Urban's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 10,000 shares of TD Synnex. The total transaction value is $1,046,700.
Monitoring the market, TD Synnex's shares up by 0.56% at $106.54 during Tuesday's morning.
Delving into TD Synnex's Background TD Synnex Corp is a global distributor and solutions aggregator for the IT ecosystem. Its edge-to-cloud portfolio is anchored in some of the technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility, and everything as a service.
Understanding the Numbers: TD Synnex's Finances Positive Revenue Trend: Examining TD Synnex's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.2% as of 30 November, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Analyzing Profitability Metrics:
- Gross Margin: With a low gross margin of 7.07%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): TD Synnex's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.06.
Analyzing Market Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 15.81 is lower than the industry average, implying a discounted valuation for TD Synnex's stock.
- Price to Sales (P/S) Ratio: With a P/S ratio of 0.17 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): TD Synnex's EV/EBITDA ratio, surpassing industry averages at 11.54, positions it with an above-average valuation in the market.
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Illuminating the Importance of Insider Transactions Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Closer Look at Important Transaction Codes When it comes to 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 indicates 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 TD Synnex's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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