Sell Alert: Graham Luce Cashes Out $629K In BJ's Wholesale Club Hldgs Stock

Revealing a significant insider sell on September 18, Graham Luce, EVP at BJ's Wholesale Club Hldgs (NYSE:BJ), as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Luce sold 6,300 shares of BJ's Wholesale Club Hldgs. The total transaction amounted to $629,118.

Tracking the Friday's morning session, BJ's Wholesale Club Hldgs shares are trading at $97.25, showing a down of 0.57%.

About BJ's Wholesale Club Hldgs

BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its 250 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ's charges annual membership fees and keeps costs down by operating a "no-frills" store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of 7,000 stock-keeping units at its warehouses to achieve greater procurement scale on select items. About 80% of BJ's net sales come from grocery items and general merchandise, with the remaining 20% stemming from gasoline and other ancillary services.

A Deep Dive into BJ's Wholesale Club Hldgs's Financials

Positive Revenue Trend: Examining BJ's Wholesale Club Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.36% as of 31 July, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 18.7%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): BJ's Wholesale Club Hldgs's EPS reflects a decline, falling below the industry average with a current EPS of 1.14.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.26, caution is advised due to increased financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.43, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.62 is lower than the industry average, implying a discounted valuation for BJ's Wholesale Club Hldgs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 14.05, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial 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 BJ's Wholesale Club Hldgs's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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