Matthew Simmes Implements A Sell Strategy: Offloads $2.05M In IES Hldgs Stock

Making a noteworthy insider sell on December 4, Matthew Simmes, President and COO at IES Hldgs IESC, is reported in the latest SEC filing.

What Happened: Simmes's decision to sell 7,000 shares of IES Hldgs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $2,053,265.

At Thursday morning, IES Hldgs shares are down by 5.01%, trading at $277.57.

Discovering IES Hldgs: A Closer Look

IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. The majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation, and air conditioning (HVAC) and plumbing installation services. This segment also provides services for installing residential solar power, both for new construction and existing residences.

IES Hldgs: A Financial Overview

Revenue Growth: IES Hldgs's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 19.53%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 24.03%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): IES Hldgs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.1.

Debt Management: IES Hldgs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.1.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 29.55 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.07 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 16.81, IES Hldgs presents an attractive value opportunity.

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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Unmasking the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

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 IES Hldgs's Insider Trades.

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