Custom Truck One Source Director Trades Company's Stock

Disclosed in the latest SEC filing, a significant insider purchase on May 9, involves Marshall Heinberg, Director at Custom Truck One Source CTOS.

What Happened: Heinberg made a significant move by purchasing 40,000 shares of Custom Truck One Source as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $162,916.

Custom Truck One Source shares are trading up 5.28% at $4.39 at the time of this writing on Thursday morning.

All You Need to Know About Custom Truck One Source

Custom Truck One Source Inc is a one-stop-shop provider of specialty equipment in the electric utility transmission and distribution, forestry, telecom, waste management, rail, and infrastructure end-markets in North America. The company's segment includes Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). It generates maximum revenue from the TES segment. Geographically, it derives a majority revenue from the United States.

Breaking Down Custom Truck One Source's Financial Performance

Revenue Challenges: Custom Truck One Source's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -9.04%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 22.05%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Custom Truck One Source's EPS reflects a decline, falling below the industry average with a current EPS of -0.06.

Debt Management: Custom Truck One Source's debt-to-equity ratio stands notably higher than the industry average, reaching 2.58. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Custom Truck One Source's current Price to Earnings (P/E) ratio of 46.33 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.56 is lower than the industry average, implying a discounted valuation for Custom Truck One Source's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.47, Custom Truck One Source presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

Breaking Down the Significance of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Custom Truck One Source's Insider Trades.

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