Littelfuse SVP Trades $336K In Company Stock

Maggie Chu, SVP at Littelfuse LFUS, reported an insider sell on August 29, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Chu executed a sale of 1,234 shares of Littelfuse with a total value of $336,837.

During Friday's morning session, Littelfuse shares down by 0.0%, currently priced at $269.62.

Unveiling the Story Behind Littelfuse

Littelfuse is a primary provider of circuit protection products (such as fuses and relays) into the transportation, industrial, telecommunications, and consumer electronics end markets. The firm is also increasing its power semiconductor business, where it predominantly serves industrial end markets and is breaking into electric vehicle charging infrastructure. Littelfuse has 17,000 global employees.

Breaking Down Littelfuse's Financial Performance

Negative Revenue Trend: Examining Littelfuse's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -8.74% 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 Information Technology sector.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 37.06%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Littelfuse's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.83.

Debt Management: Littelfuse's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Littelfuse's current Price to Earnings (P/E) ratio of 34.74 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.03 is above industry norms, reflecting an elevated valuation for Littelfuse's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 16.61, the company's market valuation exceeds industry averages.

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

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Uncovering the Importance of Insider Activity

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Unlocking the Meaning of Transaction Codes

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 Littelfuse's Insider Trades.

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