Steven M Burdick Takes Money Off The Table, Sells $1.32M In Tetra Tech Stock

Steven M Burdick, EVP at Tetra Tech TTEK, executed a substantial insider sell on February 22, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Burdick sold 7,515 shares of Tetra Tech. The total transaction amounted to $1,320,160.

Monitoring the market, Tetra Tech's shares down by 0.0% at $178.33 during Friday's morning.

Delving into Tetra Tech's Background

Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.

A Deep Dive into Tetra Tech's Financials

Revenue Growth: Tetra Tech's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 37.27%. 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 Industrials sector.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 15.51%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Tetra Tech's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.41.

Debt Management: Tetra Tech's debt-to-equity ratio is below the industry average at 0.75, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 41.28 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.97 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): With an impressive EV/EBITDA ratio of 21.92, Tetra Tech demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Tetra Tech's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.