Insider Decision: Todd Cleveland Offloads $3.25M Worth Of IES Hldgs Stock

Todd Cleveland, Director at IES Hldgs IESC, executed a substantial insider sell on March 7, according to an SEC filing.

What Happened: Cleveland's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 28,345 shares of IES Hldgs. The total transaction value is $3,249,273.

Monitoring the market, IES Hldgs's shares down by 0.0% at $115.14 during Friday's morning.

All You Need to Know About IES Hldgs

IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions and Commercial & Industrial. Majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services. Through this segment it also provides services for the installation of residential solar power, both for new construction and existing residences.

A Deep Dive into IES Hldgs's Financials

Revenue Growth: IES Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 10.36%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company maintains a high gross margin of 22.67%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.89, IES Hldgs showcases strong earnings per share.

Debt Management: IES Hldgs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.09.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 21.85 is lower than the industry average, implying a discounted valuation for IES Hldgs's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.96, 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 lower than industry averages at 10.8, IES Hldgs could be considered undervalued.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Importance of Insider Transactions

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.

Transaction Codes Worth Your Attention

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 IES Hldgs's Insider Trades.

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