Insider Selling: AL ET JEFFREY GENDELL Unloads $4.02M Of IES Hldgs Stock

AL ET JEFFREY GENDELL, Chief Executive Officer at IES Hldgs IESC, reported an insider sell on May 28, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that GENDELL executed a sale of 25,000 shares of IES Hldgs with a total value of $4,022,856.

During Wednesday's morning session, IES Hldgs shares down by 3.57%, currently priced at $150.59.

Get to Know IES Hldgs Better

IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions and Commercial & Industrial. Majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services. Through this segment it also provides services for the installation of residential solar power, both for new construction and existing residences.

IES Hldgs: Financial Performance Dissected

Revenue Growth: IES Hldgs's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 24.06%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 24.32%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): IES Hldgs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.32.

Debt Management: IES Hldgs's debt-to-equity ratio is below the industry average at 0.07, reflecting a lower dependency on debt financing and a more conservative financial approach.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 23.55 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.24, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 12.12, IES Hldgs could be considered undervalued.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 IES Hldgs's Insider Trades.

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