CSG Systems Intl EVP Trades Company's Stock

Disclosed on February 22, Elizabeth A Bauer, EVP at CSG Systems Intl CSGS, executed a substantial insider sell as per the latest SEC filing.

What Happened: Bauer's decision to sell 1,063 shares of CSG Systems Intl was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $56,434.

During Thursday's morning session, CSG Systems Intl shares down by 0.0%, currently priced at $53.06.

Unveiling the Story Behind CSG Systems Intl

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: Delving into Financials

Revenue Growth: CSG Systems Intl's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 2.57%. This indicates 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.

Insights into Profitability:

• 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 surpasses industry norms, standing at 2.17. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• 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 current P/S ratio of 1.37 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): With a below-average EV/EBITDA ratio of 10.11, CSG Systems Intl presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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Delving Into the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

When dissecting transactions, the focal point for investors is often those occurring 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 CSG Systems Intl's Insider Trades.

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