President & CEO Of CSG Systems Intl Sold $322K In Stock

Brian Shepherd, President & CEO at CSG Systems Intl CSGS, disclosed an insider sell on February 22, according to a recent SEC filing.

What Happened: Shepherd's recent move involves selling 6,074 shares of CSG Systems Intl. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $322,468.

As of Thursday morning, CSG Systems Intl shares are down by 0.0%, currently priced at $53.06.

Get to Know CSG Systems Intl Better

CSG Systems International Inc is a purpose-driven, SaaS platform company that enables companies in a wide variety of industry verticals to tackle the growing complexity of business in the digital age. The company's cloud-first architecture and customer-centric approach empower companies to deliver unforgettable experiences for B2B (business-to-business), B2C (business-to-consumer), and B2B2X (business-to-business-to-consumer) customers, making it easier for people and businesses to connect to, use and pay for the services the company offers. The company operates in one segment i.e. Solutions and Services. Geographically, the company generates revenue from Americas (principally the U.S.).

Breaking Down CSG Systems Intl's Financial Performance

Revenue Growth: Over the 3 months period, CSG Systems Intl showcased positive performance, achieving a revenue growth rate of 2.57% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 47.48%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, CSG Systems Intl exhibits below-average bottom-line performance with a current EPS of 0.44.

Debt Management: CSG Systems Intl's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.17, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 24.14, CSG Systems Intl's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.37, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 10.11 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 CSG Systems Intl's Insider Trades.

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