Massive Insider Trade At Blue Bird

Making a noteworthy insider sell on August 13, GURMINDER BEDI, Director at Blue Bird BLBD, is reported in the latest SEC filing.

What Happened: BEDI's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 18,896 shares of Blue Bird. The total transaction value is $913,596.

The latest market snapshot at Wednesday morning reveals Blue Bird shares up by 0.65%, trading at $48.28.

Unveiling the Story Behind Blue Bird

Blue Bird Corp is an American bus manufacturing company. It has its operations in two segments. The Bus segment involves the design, engineering, manufacture and sales of school buses and extended warranties; and the Parts segment which includes the sales of replacement bus parts. It carries its operations in the United States, Canada, and the rest of the world. The majority of its sales are derived from the United States through its bus manufacturing business.

Key Indicators: Blue Bird's Financial Health

Revenue Growth: Blue Bird displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 13.28%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 20.8%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Blue Bird exhibits below-average bottom-line performance with a current EPS of 0.89.

Debt Management: Blue Bird's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.71.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: Blue Bird's current Price to Earnings (P/E) ratio of 15.94 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.21 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 10.21 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Important

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Blue Bird's Insider Trades.

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