Insider Decision: Hudson Executive Capital LP Offloads $570K Worth Of Cantaloupe Stock

Revealing a significant insider sell on February 22, Hudson Executive Capital LP, 10% Owner at Cantaloupe CTLP, as per the latest SEC filing.

What Happened: LP's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 90,582 shares of Cantaloupe. The total transaction value is $570,666.

As of Thursday morning, Cantaloupe shares are up by 1.11%, currently priced at $6.35.

About Cantaloupe

Cantaloupe Inc operates in the small ticket electronic payments industry. It provides wireless, cashless, micro-transactions, and networking services within the unattended Point of Sale (POS) market. Its products and services portfolio consists of ePort Cashless devices, eSuds, EnergyMisers, and Value-added services which include Loyalty and Prepaid, Intelligent Vending, and others. The company offers services to different industries covering car wash, taxi and transportation, laundry, vending, kiosk, amusement, and arcade. The Company derives revenue from the sale or lease of equipment and services to the small ticket, unattended POS market and majority of its revenue is derived from subscription and transaction fees.

Cantaloupe: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Cantaloupe showcased positive performance, achieving a revenue growth rate of 6.57% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 37.2%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Cantaloupe's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.04.

Debt Management: Cantaloupe's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.28.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Cantaloupe's P/E ratio of 31.38 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.83, 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 15.26, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

A Closer Look at Important Transaction Codes

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 Cantaloupe's Insider Trades.

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