Bentley Systems Insider Trades SendAa Signal

A new SEC filing reveals that GREGORY BENTLEY, Chairman at Bentley Systems BSY, made a notable insider purchase on January 25,.

What Happened: BENTLEY's recent purchase of 64,787 shares of Bentley Systems, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, reflects confidence in the company's potential. The total transaction value is $3,291,827.

The latest update on Friday morning shows Bentley Systems shares up by 0.1%, trading at $50.1.

About Bentley Systems

Bentley Systems is a software vendor that caters to engineers, architects, constructors, and geospatial professionals by enabling design, modeling, simulation and project, and data management of infrastructure assets. The firm delivers solutions via the cloud, desktop, and hybrid environments. While Bentley is relatively small in comparison with peers like Autodesk, it shines in core specialty areas, like bridge or rail design, as opposed to being more broad-based in its applications. As of fiscal 2022, approximately 58% of revenue is derived from outside the U.S. (with 28% of revenue coming from EMEA and 18% coming from APAC as of fiscal 2022). Bentley's largest end market is the public works and utilities sector, which represents approximately two thirds of revenue.

Bentley Systems: Financial Performance Dissected

Revenue Growth: Bentley Systems's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 14.27%. This indicates 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 Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company sets a benchmark with a high gross margin of 78.91%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Bentley Systems's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.17.

Debt Management: Bentley Systems's debt-to-equity ratio stands notably higher than the industry average, reaching 2.36. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 90.98, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 13.78 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Bentley Systems's EV/EBITDA ratio at 50.65 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Bentley Systems's Insider Trades.

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