Perficient SVP Makes $442K Stock Purchase

It was revealed in a recent SEC filing that Susan L Adomite, SVP at Perficient PRFT made a noteworthy insider purchase on February 22,.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Adomite purchased 6,409 shares of Perficient, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $442,477.

In the Friday's morning session, Perficient's shares are currently trading at $69.1, experiencing a down of 0.0%.

Get to Know Perficient Better

Perficient Inc provides a variety of information technology and consulting services that focus on digital experience, business optimization, and IT solutions. The company's services include big data analytics, technology platform implementations, enterprise content management, portals and collaboration, management consulting, custom applications, business integration, business process management, and customer relationship management. It serves the healthcare, financial services, retail, and electronics industries. The vast majority of the company's revenue comes from the United States.

Financial Insights: Perficient

Revenue Challenges: Perficient's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -1.92%. 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 Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 32.72%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Perficient's EPS reflects a decline, falling below the industry average with a current EPS of 0.66.

Debt Management: With a high debt-to-equity ratio of 0.84, Perficient faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 24.33 is lower than the industry average, implying a discounted valuation for Perficient's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.76 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 16.54, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to 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.

Transaction Codes To Focus On

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Perficient's Insider Trades.

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