10% Owner Of Sun Country Airlines Sold $67.89M In Stock

Revealing a significant insider sell on November 7, SCA Horus Holdings LLC, 10% Owner at Sun Country Airlines SNCY, as per the latest SEC filing.

What Happened: LLC's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 4,815,000 shares of Sun Country Airlines. The total transaction value is $67,891,500.

In the Thursday's morning session, Sun Country Airlines's shares are currently trading at $15.56, experiencing a down of 0.0%.

Delving into Sun Country Airlines's Background

Sun Country Airlines Holdings Inc operates low-cost air carriers. The business has two operating segments: Passenger and Cargo. The passenger segment has two internal passenger groups Scheduled service and Charter. The Cargo segment provides air cargo services. The majority of the revenue is from the passenger segment.

A Deep Dive into Sun Country Airlines's Financials

Revenue Growth: Sun Country Airlines displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 0.24%. This indicates a notable increase in the company's 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 Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 18.66%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Sun Country Airlines's EPS reflects a decline, falling below the industry average with a current EPS of 0.04.

Debt Management: Sun Country Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.22.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Sun Country Airlines's current Price to Earnings (P/E) ratio of 18.75 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.81, 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 lower-than-industry-average EV/EBITDA ratio of 6.71, Sun Country Airlines presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Navigating the Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Sun Country Airlines's Insider Trades.

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