Options Movement At T. Rowe Price Gr: Hiebler Jessica M Exercises Worth $63K

A substantial insider activity was disclosed on June 27, as M, Principal Accounting Officer at T. Rowe Price Gr TROW, reported the exercise of a large sell of company stock options.

What Happened: M, Principal Accounting Officer at T. Rowe Price Gr, exercised stock options for 1,401 shares of TROW stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $69.84 per share.

T. Rowe Price Gr shares are trading, exhibiting down of 0.0% and priced at $115.43 during Friday's morning. This values M's 1,401 shares at $63,875.

About T. Rowe Price Gr

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load us and international stock, hybrid, bond, and money market funds. At the end of April 2024, the firm had $1.485 trillion in managed assets, composed of equity (51%), balanced (34%), fixed-income and money market (12%), and alternative (3%) offerings. Approximately two thirds of managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a us-based asset manager, deriving just under 9% of its AUM from overseas.

T. Rowe Price Gr: Financial Performance Dissected

Positive Revenue Trend: Examining T. Rowe Price Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.83% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 50.53%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.5, T. Rowe Price Gr showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.03.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 13.71 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.88 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): At 8.83, T. Rowe Price Gr's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Exploring Key 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 T. Rowe Price Gr's Insider Trades.

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