CBL & Associates President Sold $1.10M In Company Stock

Michael I Lebovitz, President at CBL & Associates CBL, disclosed an insider sell on August 19, according to a recent SEC filing.

What Happened: After conducting a thorough analysis, Lebovitz sold 42,627 shares of CBL & Associates. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $1,103,034.

CBL & Associates shares are trading up 0.93% at $26.09 at the time of this writing on Monday morning.

All You Need to Know About 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.

A Deep Dive into CBL & Associates's Financials

Decline in Revenue: Over the 3 months period, CBL & Associates faced challenges, resulting in a decline of approximately -0.16% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 66.88%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): CBL & Associates's EPS reflects a decline, falling below the industry average with a current EPS of 0.14.

Debt Management: CBL & Associates's debt-to-equity ratio is notably higher than the industry average. With a ratio of 6.0, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 28.1 is lower than the industry average, implying a discounted valuation for CBL & Associates's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.53, 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 averages at 6.31, CBL & Associates 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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Why Insider Activity Matters in Finance

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.

A Deep Dive into Insider 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 CBL & Associates's Insider Trades.

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