Board Member Of N-able Sold $271K In Stock

Disclosed on August 14, Ann Johnson, Board Member at N-able NABL, executed a substantial insider sell as per the latest SEC filing.

What Happened: Johnson's decision to sell 21,200 shares of N-able was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $271,148.

Tracking the Thursday's morning session, N-able shares are trading at $12.8, showing a down of 0.0%.

Get to Know N-able Better

N-able Inc is a provider of cloud-based software solutions for managed service providers (MSPs), enabling them to support digital transformation and growth for small and medium-sized enterprises. With a flexible technology platform and powerful integrations, N-able makes it easy for MSPs to monitor, manage, and protect their end-customer systems, data, and networks. The company's growing portfolio of management, security, automation, and data protection solutions is built for IT services management professionals. Geographically, the majority of revenue is from the United States. it also has a presence in the United Kingdom and all other International regions.

Unraveling the Financial Story of N-able

Revenue Growth: Over the 3 months period, N-able showcased positive performance, achieving a revenue growth rate of 12.6% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 83.96%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): N-able's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.05.

Debt Management: With a below-average debt-to-equity ratio of 0.51, N-able adopts a prudent financial strategy, indicating a balanced approach to debt management.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 71.11 is lower than the industry average, implying a discounted valuation for N-able's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.34 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): With an EV/EBITDA ratio lower than industry averages at 23.74, N-able could be considered undervalued.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

Cracking Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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 N-able's Insider Trades.

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