10% Owner At Innovative Solns Sells $795K Of Stock

Revealing a significant insider sell on June 5, Christopher Harborne, 10% Owner at Innovative Solns ISSC, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Harborne sold 68,503 shares of Innovative Solns. The total transaction amounted to $795,399.

In the Thursday's morning session, Innovative Solns's shares are currently trading at $12.02, experiencing a up of 0.5%.

All You Need to Know About Innovative Solns

Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.

Innovative Solns: Delving into Financials

Positive Revenue Trend: Examining Innovative Solns's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 104.26% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Holistic Profitability Examination:

• Gross Margin: The company maintains a high gross margin of 51.36%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Innovative Solns's EPS reflects a decline, falling below the industry average with a current EPS of 0.3.

Debt Management: Innovative Solns's debt-to-equity ratio stands notably higher than the industry average, reaching 0.51. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.61, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.23 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 13.16, Innovative Solns presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

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 Insider Activity Matters in Finance

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Innovative Solns's Insider Trades.

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