Apollo Management Holdings GP LLC Takes Money Off The Table, Sells $228.38M In TD Synnex Stock

It was reported on January 18, that Apollo Management Holdings GP LLC, 10% Owner at TD Synnex SNX executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that LLC executed a sale of 2,250,000 shares of TD Synnex with a total value of $228,375,000.

TD Synnex shares are trading up 0.39% at $103.7 at the time of this writing on Thursday morning.

Delving into TD Synnex's Background

TD Synnex Corp is a global distributor and solutions aggregator for the IT ecosystem. Its edge-to-cloud portfolio is anchored in some of the technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility, and everything as a service.

Financial Milestones: TD Synnex's Journey

Positive Revenue Trend: Examining TD Synnex's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.2% as of 30 November, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 7.07%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): TD Synnex's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.06.

Debt Management: TD Synnex's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.5.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current P/E ratio of 15.48 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.17 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): A high EV/EBITDA ratio of 11.36 reflects market recognition of TD Synnex's value, positioning it as more highly valued compared to industry peers.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Insider Transactions Are Important

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Essential Transaction Codes Unveiled

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 TD Synnex's Insider Trades.

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