CBL & Associates 10% Owner Sold $1.05M In Company Stock

SVP Excelsior Management LLC, 10% Owner at CBL & Associates CBL, reported an insider sell on July 31, according to a new SEC filing.

What Happened: LLC's decision to sell 40,503 shares of CBL & Associates was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,054,333.

During Thursday's morning session, CBL & Associates shares down by 0.12%, currently priced at $25.74.

Unveiling the Story Behind CBL & Associates

CBL & Associates Properties Inc is a U.S.-based real estate investment trust. The company engages in the ownership, development, acquisition, leasing, management and operation of regional shopping malls, outlet centers, lifestyle centers, open-air centers and other properties. CBL's sales predominantly derive from leasing arrangements with retail tenants. The company also generates revenue from management and development fees, as well as sales of its real estate assets. CBL expands its portfolio of assets through activities such as redevelopment, renovation, and expansion.

Breaking Down CBL & Associates's Financial Performance

Revenue Growth: CBL & Associates's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -5.31%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 66.67%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): CBL & Associates's EPS is below the industry average. The company faced challenges with a current EPS of -0.01. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 5.74, caution is advised due to increased financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: CBL & Associates's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 257.7.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.53, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CBL & Associates's EV/EBITDA ratio, lower than industry averages at 6.61, indicates attractively priced shares.

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 Insider Transactions Are Key in Investment Decisions

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 CBL & Associates's Insider Trades.

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