Dayton Judd's Recent Buy: Acquires $61K In Optex Systems Hldgs Stock

A notable insider purchase on November 7, was reported by Dayton Judd, Director at Optex Systems Hldgs OPXS, based on the most recent SEC filing.

What Happened: Judd demonstrated confidence in Optex Systems Hldgs by purchasing 7,600 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the transaction is $61,560.

In the Friday's morning session, Optex Systems Hldgs's shares are currently trading at $8.39, experiencing a up of 2.82%.

Get to Know Optex Systems Hldgs Better

Optex Systems Holdings Inc manufactures optical sighting systems and assemblies for the U.S. Department of Defense, foreign military applications, and commercial markets. Its products are installed on a variety of United States military land vehicles, such as the Abrams and Bradley fighting vehicles, and light armored and security vehicles, and have been selected for installation on the Stryker family of vehicles. The company's operating segment includes Optex Richardson and Applied Optics Center Dallas. It generates maximum revenue from the Applied Optics Center Dallas segment. Some of its products include M17 Day/Thermal Periscope; DDAN / M36 Sights; Laser Protected Periscopes; Muzzle Reference Sensor and others.

Optex Systems Hldgs: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Optex Systems Hldgs showcased positive performance, achieving a revenue growth rate of 26.32% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 31.8%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Optex Systems Hldgs's EPS reflects a decline, falling below the industry average with a current EPS of 0.19.

Debt Management: Optex Systems Hldgs's debt-to-equity ratio is below the industry average at 0.2, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.38, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.7 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.45, Optex Systems Hldgs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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The Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes Worth Your Attention

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Optex Systems Hldgs's Insider Trades.

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