Limbach Holdings Recent Insider Activity

Disclosed on May 15, Michael F McNally, Director at Limbach Holdings LMB, executed a substantial insider sell as per the latest SEC filing.

What Happened: McNally opted to sell 7,973 shares of Limbach Holdings, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $399,964.

As of Thursday morning, Limbach Holdings shares are down by 0.0%, currently priced at $50.66.

All You Need to Know About Limbach Holdings

Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. It operates in two segments namely General Contractor Relationships (GCR) and Owner Direct Relationships (ODR). The company generates maximum revenue from the ODR segment.

Limbach Holdings's Economic Impact: An Analysis

Negative Revenue Trend: Examining Limbach Holdings's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -1.68% in revenue growth, reflecting a decrease in 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.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 26.13%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Limbach Holdings's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.68.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.34.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 23.78 is lower than the industry average, implying a discounted valuation for Limbach Holdings's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.18 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 a lower-than-industry-average EV/EBITDA ratio of 13.16, Limbach Holdings presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Limbach Holdings's Insider Trades.

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