CSG Systems Intl EVP & CFO Trades $107K In Company Stock

Hai Tran, EVP & CFO at CSG Systems Intl CSGS, disclosed an insider sell on February 22, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Tran executed a sale of 2,024 shares of CSG Systems Intl with a total value of $107,454.

The latest update on Thursday morning shows CSG Systems Intl shares down by 0.0%, trading 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.).

CSG Systems Intl: A Financial Overview

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. 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 Industrials sector.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 47.48%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): CSG Systems Intl's EPS reflects a decline, falling below the industry average with a current EPS of 0.44.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.17, caution is advised due to increased financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: CSG Systems Intl's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 24.14.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.37 is lower than the industry average, implying a discounted valuation for CSG Systems Intl's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 10.11, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Illuminating the Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Transaction Codes To Focus On

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 CSG Systems Intl's Insider Trades.

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