Board Member Of Tetra Tech Sold $362K In Stock

Kirsten M Volpi, Board Member at Tetra Tech TTEK, reported an insider sell on December 6, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Volpi sold 2,228 shares of Tetra Tech. The total transaction amounted to $362,589.

Monitoring the market, Tetra Tech's shares down by 0.0% at $163.14 during Wednesday's morning.

Delving into Tetra Tech's Background

Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.

Financial Milestones: Tetra Tech's Journey

Positive Revenue Trend: Examining Tetra Tech's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 39.67% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 16.82%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Tetra Tech's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.01.

Debt Management: With a below-average debt-to-equity ratio of 0.78, Tetra Tech adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 31.99 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.93 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tetra Tech's EV/EBITDA ratio stands at 18.67, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

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

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 Deep Dive into Insider 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 Tetra Tech's Insider Trades.

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