Insider Decision: B Riley Financial Inc Offloads $467K Worth Of Transact Technologies Stock

B Riley Financial Inc, 10% Owner at Transact Technologies TACT, disclosed an insider sell on January 24, according to a recent SEC filing.

What Happened: After conducting a thorough analysis, Inc sold 61,191 shares of Transact Technologies. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $467,248.

In the Wednesday's morning session, Transact Technologies's shares are currently trading at $7.69, experiencing a down of 1.41%.

Get to Know Transact Technologies Better

Transact Technologies Inc develops and sells software-driven technology and printing solutions. The company's software is sold under BOHA, AccuDate, Epic, EPICENTRAL, Ithaca, and Printrex brand names. It also provides supplies and consumables used in the printing and scanning activities to restaurant and hospitality, banking, retail, casino and gaming, point of sale automation, lottery, medical, mobile, oil, and gas markets. Most of the revenue is derived from the casinos and gaming industry followed by the Foodservice technology market. Its geographical segments are the United States and International, of which the majority of its revenue comes from the United States.

Transact Technologies: Delving into Financials

Revenue Challenges: Transact Technologies's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -3.73%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company sets a benchmark with a high gross margin of 51.87%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Transact Technologies's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.09.

Debt Management: With a below-average debt-to-equity ratio of 0.11, Transact Technologies adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.29, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.01 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): At 8.61, Transact Technologies's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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.

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

Unmasking the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Transaction Codes Worth Your Attention

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Transact Technologies's Insider Trades.

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