Massive Insider Trade At CBL & Associates

Making a noteworthy insider sell on February 29, Stephen D Lebovitz, CEO at CBL & Associates CBL, is reported in the latest SEC filing.

What Happened: Lebovitz's decision to sell 45,077 shares of CBL & Associates was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $1,061,200.

The latest update on Thursday morning shows CBL & Associates shares down by 0.0%, trading at $23.47.

All You Need to Know About CBL & Associates

CBL & Associates Properties Inc is a U.S.-based real estate investment trust. The company engages in the ownership, development, acquisition, leasing, management and operation of regional shopping malls, outlet centers, lifestyle centers, open-air centers and other properties. . CBL's sales predominantly derive from leasing arrangements with retail tenants. The company also generates revenue from management and development fees, as well as sales of its real estate assets. CBL expands its portfolio of assets through activities such as redevelopment, renovation, and expansion.

Financial Insights: CBL & Associates

Positive Revenue Trend: Examining CBL & Associates's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.01% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: With a high gross margin of 84.07%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): CBL & Associates's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.37.

Debt Management: CBL & Associates's debt-to-equity ratio stands notably higher than the industry average, reaching 5.8. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 138.06 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.37 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.59, CBL & Associates could be considered undervalued.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes Worth Your Attention

When analyzing transactions, investors tend to focus on those in the open market, 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 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 CBL & Associates's Insider Trades.

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