Limbach Holdings Director Trades Company's Stock

Revealing a significant insider sell on August 16, Joshua Horowitz, Director at Limbach Holdings LMB, as per the latest SEC filing.

What Happened: Horowitz opted to sell 26,400 shares of Limbach Holdings, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $1,560,355.

In the Friday's morning session, Limbach Holdings's shares are currently trading at $59.12, experiencing a down of 0.0%.

Unveiling the Story Behind Limbach Holdings

Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. It operates in two segments namely General Contractor Relationships (GCR) and Owner Direct Relationships (ODR). The company generates maximum revenue from the ODR segment.

Limbach Holdings: Delving into Financials

Negative Revenue Trend: Examining Limbach Holdings's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -2.12% in revenue growth, reflecting a decrease in 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 Industrials sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 27.41%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Limbach Holdings exhibits below-average bottom-line performance with a current EPS of 0.53.

Debt Management: With a below-average debt-to-equity ratio of 0.32, Limbach Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 27.47 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.41 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.68 reflects market recognition of Limbach Holdings's value, positioning it as more highly valued compared to industry peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Transactions Are Important

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

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.

The Insider's Guide to Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Limbach Holdings's Insider Trades.

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