Eye On Growth: Michael M McCann Adds $100K Of Limbach Holdings Stock To Portfolio

A notable insider purchase on May 20, was reported by Michael M McCann, Chief Executive Officer at Limbach Holdings LMB, based on the most recent SEC filing.

What Happened: McCann made a significant move by purchasing 2,099 shares of Limbach Holdings as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $100,270.

At Tuesday morning, Limbach Holdings shares are up by 0.82%, trading at $48.9.

Delving into Limbach Holdings's Background

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.

Financial Insights: Limbach Holdings

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.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 26.13%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Limbach Holdings's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.68.

Debt Management: Limbach Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.34.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.77 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.13 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 12.59 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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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.

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.

Transaction Codes Worth Your Attention

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 Limbach Holdings's Insider Trades.

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