Insider Transaction: Janet O Estep Sells $200K Worth Of ACI Worldwide Shares

Disclosed on June 23, Janet O Estep, Board Member at ACI Worldwide ACIW, executed a substantial insider sell as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Estep sold 4,500 shares of ACI Worldwide. The total transaction value is $200,969.

Monitoring the market, ACI Worldwide's shares down by 0.0% at $44.59 during Monday's morning.

Unveiling the Story Behind ACI Worldwide

ACI Worldwide Inc develops, markets and installs a portfolio of software products focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but majority of the revenue is generated in the United States and EMEA regions.

ACI Worldwide's Financial Performance

Revenue Growth: ACI Worldwide displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 24.85%. 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 issues a cost efficiency warning with a low gross margin of 45.92%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): ACI Worldwide's EPS reflects a decline, falling below the industry average with a current EPS of 0.56.

Debt Management: With a below-average debt-to-equity ratio of 0.59, ACI Worldwide adopts a prudent financial strategy, indicating a balanced approach to debt management.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 17.62, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.84, 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): At 10.34, ACI Worldwide's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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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Why Insider Transactions Are Key in Investment Decisions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important 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 ACI Worldwide's Insider Trades.

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