Jose-Marie Griffiths Of Daktronics Shows Optimism, Buys $84K In Stock

On September 11, a substantial insider purchase was made by Jose-Marie Griffiths, Director at Daktronics DAKT, as per the latest SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Griffiths purchased 7,160 shares of Daktronics, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $84,989.

As of Thursday morning, Daktronics shares are up by 0.9%, currently priced at $12.3.

About Daktronics

Daktronics Inc designs and manufactures electronic scoreboards, programmable display systems, and large-screen video displays for sporting, commercial, and transportation applications. It is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, technical contracting, professional services, and customer service and support. The company offers a complete line of products, from small scoreboards and electronic displays to large multimillion-dollar video display systems as well as related control, timing, and sound systems. The company has five reportable segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company makes the majority of its revenue from Live events.

Financial Milestones: Daktronics's Journey

Revenue Challenges: Daktronics's revenue growth over 3 months faced difficulties. As of 31 July, 2024, the company experienced a decline of approximately -2.77%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 26.4%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Daktronics's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.11.

Debt Management: Daktronics's debt-to-equity ratio is below the industry average at 0.32, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 58.05 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.7 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Daktronics's EV/EBITDA ratio, lower than industry averages at 6.15, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Navigating the World of Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Daktronics's Insider Trades.

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