A Noteworthy Decision By Alan King As Acquires $703K In Corpay Stock Options

Disclosed in a recent SEC filing, Alan King, Group President at Corpay CPAY, made a strategic move by acquiring company stock options on June 23,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that King, Group President at Corpay, a company in the Financials sector, acquired stock options for 15,000 shares of CPAY. The options allow King to buy the company's stock at $280.97 per share.

The Tuesday morning market activity shows Corpay shares up by 1.87%, trading at $327.87. This implies a total value of $703,424 for King's 15,000 shares.

Discovering Corpay: A Closer Look

Corpay Inc is a corporate payments company that helps businesses and consumers manage and pay their expenses. Its suite of modern payment solutions helps customers manage vehicle-related expenses, lodging expenses, and corporate payments. Its reportable segments are; Vehicle Payments, Corporate Payments, Lodging Payments, and Other. The group's geographic areas are the United States, Brazil, the United Kingdom, and Other.

Corpay: Delving into Financials

Revenue Growth: Corpay's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 7.53%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 77.94%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Corpay's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.46.

Debt Management: With a high debt-to-equity ratio of 2.37, Corpay faces challenges in effectively managing its debt levels, indicating potential financial strain.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.59 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.68, Corpay's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Corpay's EV/EBITDA ratio at 13.61 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Transactions Are Key in Investment Decisions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

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 Corpay's Insider Trades.

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