Insider Selling: Clayton William Geary Unloads $1.22M Of WESCO Intl Stock

Clayton William Geary, EVP & GM at WESCO Intl WCC, reported an insider sell on November 13, according to a new SEC filing.

What Happened: After conducting a thorough analysis, Geary sold 5,935 shares of WESCO Intl. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $1,221,173.

WESCO Intl shares are trading down 0.0% at $207.05 at the time of this writing on Thursday morning.

Unveiling the Story Behind WESCO Intl

Wesco International is an industrial distributor that has three reportable segments, electrical and electronic solutions, communications and security solutions, and utility and broadband solutions. The company offers more than 1.5 million products to its 140,000 active customers through a distribution network of 800 branches, warehouses, and sales offices, including 43 distribution centers. Wesco generates approximately 74% of its sales in the United States, but it has a global reach, with operations in 50 other countries.

Financial Milestones: WESCO Intl's Journey

Revenue Growth: WESCO Intl's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -2.75%. This indicates a decrease 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.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.09%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): WESCO Intl's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 3.87.

Debt Management: WESCO Intl's debt-to-equity ratio is below the industry average. With a ratio of 1.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 16.59 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.49 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): WESCO Intl's EV/EBITDA ratio at 10.0 suggests potential undervaluation, falling below industry averages.

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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Understanding the Significance of Insider Transactions

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

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

Breaking Down the Significance of 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 WESCO Intl's Insider Trades.

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