Sell Alert: Osamu Watanabe Cashes Out $460K In Moelis Stock

It was reported on July 29, that Osamu Watanabe, General Counsel at Moelis (NYSE:MC) executed a significant insider sell, according to an SEC filing.

What Happened: Watanabe opted to sell 6,340 shares of Moelis, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $460,537.

In the Wednesday's morning session, Moelis's shares are currently trading at $71.72, experiencing a up of 0.87%.

Unveiling the Story Behind Moelis

Moelis & Co is an independent investment bank that provides strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds. The company assists its clients in achieving their strategic goals by offering comprehensive, globally integrated financial advisory services across all industry sectors. It also advises clients on their critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. it generates revenue from advisory transactions. The firm derives a majority of its revenue from the United States followed by Europe and the rest of the World.

Moelis's Financial Performance

Revenue Growth: Moelis's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 38.09%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 31.0%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Moelis's EPS reflects a decline, falling below the industry average with a current EPS of 0.55.

Debt Management: Moelis's debt-to-equity ratio is below the industry average. With a ratio of 0.42, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Moelis's P/E ratio of 27.77 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.02 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 20.61 reflects market recognition of Moelis's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 signals 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 Moelis's Insider Trades.

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