CEO At Euronet Worldwide Sells $1.66M Of Stock

Revealing a significant insider sell on September 9, Juan Bianchi, CEO at Euronet Worldwide EEFT, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Bianchi sold 16,440 shares of Euronet Worldwide. The total transaction value is $1,662,903.

The latest market snapshot at Tuesday morning reveals Euronet Worldwide shares down by 0.0%, trading at $98.65.

Get to Know Euronet Worldwide Better

Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. It operates in three segment EFT Processing Segment, epay Segment, and Money Transfer Segment. Its segment revenue comes from by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. It generates the majority if its geographic revenue from the United States of America.

A Deep Dive into Euronet Worldwide's Financials

Revenue Growth: Euronet Worldwide's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.02%. This indicates a substantial increase in the company's 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 Financials sector.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 41.11%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Euronet Worldwide'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: Euronet Worldwide's debt-to-equity ratio surpasses industry norms, standing at 1.99. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 17.22 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.29, 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): With a below-average EV/EBITDA ratio of 7.85, Euronet Worldwide presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Understanding Crucial 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 Euronet Worldwide's Insider Trades.

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