Sell Alert: Robert G Brown Cashes Out $109K In SPAR Group Stock

A substantial insider sell was reported on July 31, by Robert G Brown, 10% Owner at SPAR Group SGRP, based on the recent SEC filing.

What Happened: Brown's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 50,000 shares of SPAR Group. The total transaction value is $109,656.

During Thursday's morning session, SPAR Group shares down by 0.52%, currently priced at $1.9.

Get to Know SPAR Group Better

SPAR Group Inc is a supplier of merchandising and other marketing services. It also provides range of services to retailers, consumer goods manufacturers and distributors around the globe. The company divides its operations into three reportable regional segments: Americas, which is comprised of United States, Canada, Brazil and Mexico; Asia-Pacific (APAC), which is comprised of Japan, China, and India; and Europe, Middle East and Africa (EMEA), which is comprised of South Africa. It generates maximum revenue from Americas.

SPAR Group: Delving into Financials

Positive Revenue Trend: Examining SPAR Group's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.7% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 18.26%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): SPAR Group's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.28.

Debt Management: With a below-average debt-to-equity ratio of 0.76, SPAR Group adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 4.78 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.18, 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 benchmarks at 3.0, SPAR Group presents an attractive value opportunity.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Why Pay Attention to Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

A Closer Look at 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 SPAR Group's Insider Trades.

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