Phil Horlock At Blue Bird Capitalizes: Options Exercised, Resulting In $2.08M

A significant insider transaction involving the exercise of company stock options was reported on September 16, by Phil Horlock, Chief Executive Officer at Blue Bird BLBD, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday revealed that Horlock, Chief Executive Officer at Blue Bird in the Industrials sector, exercised stock options for 59,752 shares of BLBD stock. The exercise price of the options was $17.22 per share.

Currently, Blue Bird shares are trading up 3.59%, priced at $51.99 during Tuesday's morning. This values Horlock's 59,752 shares at $2,077,348.

Discovering Blue Bird: A Closer Look

Blue Bird Corp is an American bus manufacturing company. It has its operations in two segments. The Bus segment involves the design, engineering, manufacture and sales of school buses and extended warranties; and the Parts segment which includes the sales of replacement bus parts. It carries its operations in the United States, Canada, and the rest of the world. The majority of its sales are derived from the United States through its bus manufacturing business.

Financial Insights: Blue Bird

Revenue Growth: Over the 3 months period, Blue Bird showcased positive performance, achieving a revenue growth rate of 13.28% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 20.8%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Blue Bird's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.89.

Debt Management: With a below-average debt-to-equity ratio of 0.71, Blue Bird adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Blue Bird's current Price to Earnings (P/E) ratio of 16.67 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.27, Blue Bird's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 10.68 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Important

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

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

A Deep Dive into Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Blue Bird's Insider Trades.

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