Edmond Villani Implements A Sell Strategy: Offloads $259K In Cohen & Steers Stock

It was reported on August 28, that Edmond Villani, Board Member at Cohen & Steers CNS executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Villani sold 3,000 shares of Cohen & Steers. The total transaction amounted to $259,980.

Tracking the Thursday's morning session, Cohen & Steers shares are trading at $86.43, showing a down of 0.0%.

Get to Know Cohen & Steers Better

Cohen & Steers is a niche asset manager concentrating on real estate securities. The firm invests mainly in the equity shares of real estate investment trusts, with holdings in domestic and international real estate securities accounting for close to two thirds of its $79.3 billion in managed assets at the end of January 2024. Cohen & Steers also manages portfolios dedicated to preferred securities, utilities stocks, and other high-yield offerings. The firm's distribution is balanced among its closed-end funds, open-end funds, and institutional accounts. During the past four calendar quarters, the company garnered 42% (27%) of its managed assets (base management fees) from institutional clients, 45% (52%) from open-end funds, and 13% (21%) from closed-end funds.

Financial Milestones: Cohen & Steers's Journey

Revenue Growth: Cohen & Steers displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 2.19%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Insights into Profitability:

• Gross Margin: With a low gross margin of 47.65%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Cohen & Steers's EPS reflects a decline, falling below the industry average with a current EPS of 0.63.

Debt Management: Cohen & Steers's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 33.89 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 8.57 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 22.03, Cohen & Steers demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Cohen & Steers's Insider Trades.

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