Insider Transaction: James Tim OBrien Sells $563K Worth Of N-able Shares

Revealing a significant insider sell on August 20, James Tim OBrien, EVP at N-able NABL, as per the latest SEC filing.

What Happened: OBrien's recent move involves selling 44,151 shares of N-able. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $563,808.

The latest update on Wednesday morning shows N-able shares down by 0.39%, trading at $12.61.

About N-able

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.

N-able: A Financial Overview

Positive Revenue Trend: Examining N-able's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.6% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 83.96%, reflecting superior cost management and profitability compared 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: N-able's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 70.33 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 5.28, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 23.5 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

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

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 N-able's Insider Trades.

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