Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on January 18, Apollo Management Holdings GP LLC, 10% Owner at TD Synnex (NYSE:SNX), as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, LLC sold 2,250,000 shares of TD Synnex. The total transaction value is $228,375,000.
The latest market snapshot at Thursday morning reveals TD Synnex shares up by 0.39%, trading at $103.7.
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.
TD Synnex's Financial Performance Revenue Growth: TD Synnex displayed positive results in 3 months. As of 30 November, 2023, the company achieved a solid revenue growth rate of approximately 3.2%. This indicates a notable 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 shows a low gross margin of 7.07%, suggesting potential challenges in cost control and profitability compared to its peers.
- Earnings per Share (EPS): TD Synnex's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.06.
Market Valuation:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 15.48 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.17, 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): With an EV/EBITDA ratio of 11.36, the company's market valuation exceeds industry averages.
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Unmasking the Significance of Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
A Closer Look at Important 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 TD Synnex's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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