Leonard P Isotoff Executes Sell Order: Offloads $314K In Matson Stock

It was reported on May 7, that Leonard P Isotoff, Senior Vice President at Matson MATX executed a significant insider sell, according to an SEC filing.

What Happened: Isotoff's decision to sell 2,800 shares of Matson was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $314,945.

At Wednesday morning, Matson shares are up by 0.29%, trading at $112.03.

Unveiling the Story Behind Matson

Matson Inc is engaged in providing ocean transportation and logistics services. The business segments of the company are Ocean Transportation which provides ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, California, Okinawa, and different islands in the South Pacific, and Logistics segment which offers long haul and regional highway trucking services, warehousing and distribution services, supply chain management, and freight forwarding services. The firm generates the majority of its revenue from Ocean Transportation segment.

Understanding the Numbers: Matson's Finances

Decline in Revenue: Over the 3 months period, Matson faced challenges, resulting in a decline of approximately -8.47% in revenue growth as of 31 March, 2024. This signifies a reduction 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.

Profitability Metrics: Unlocking Value

• Gross Margin: With a low gross margin of 15.22%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Matson's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.05.

Debt Management: Matson's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.18.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.31, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.27 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): Matson's EV/EBITDA ratio of 6.75 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Pay Attention to Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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

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 Matson's Insider Trades.

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