Massive Insider Trade At Manhattan Associates

THOMAS NOONAN, Board Member at Manhattan Associates MANH, executed a substantial insider sell on February 1, according to an SEC filing.

What Happened: NOONAN opted to sell 7,481 shares of Manhattan Associates, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $1,669,093.

During Friday's morning session, Manhattan Associates shares down by 0.0%, currently priced at $249.07.

About Manhattan Associates

Manhattan Associates provides software that helps users manage their supply chains, inventory, and omnichannel operations. Customers are generally retailers, wholesalers, manufacturers, and logistics providers. The company was founded in 1990 and serves more than 1,200 customers around the world.

A Deep Dive into Manhattan Associates's Financials

Decline in Revenue: Over the 3 months period, Manhattan Associates faced challenges, resulting in a decline of approximately -0.08% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 55.2%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Manhattan Associates's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.79.

Debt Management: Manhattan Associates's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.06.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 88.37, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 16.8 is above industry norms, reflecting an elevated valuation for Manhattan Associates's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Manhattan Associates's EV/EBITDA ratio of 69.98 exceeds industry averages, indicating a premium valuation in the market

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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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Manhattan Associates's Insider Trades.

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