Insider Selling: Jeffrey Gorski Unloads $174K Of Littelfuse Stock

Jeffrey Gorski, SVP & Chief Accounting Officer at Littelfuse LFUS, executed a substantial insider sell on December 16, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Gorski sold 700 shares of Littelfuse. The total transaction value is $174,314.

The latest update on Monday morning shows Littelfuse shares down by 0.0%, trading at $246.3.

Unveiling the Story Behind Littelfuse

Littelfuse is a primary provider of circuit protection products (such as fuses and relays) into the transportation, industrial, telecommunications, and consumer electronics end markets. The firm is also increasing its power semiconductor business, where it predominantly serves industrial end markets and is breaking into electric vehicle charging infrastructure. Littelfuse has 17,000 global employees.

Littelfuse: A Financial Overview

Negative Revenue Trend: Examining Littelfuse's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -6.54% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 38.05%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Littelfuse's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.34.

Debt Management: Littelfuse's debt-to-equity ratio is below the industry average. With a ratio of 0.36, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Littelfuse's P/E ratio of 31.66 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.81 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.07 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Littelfuse's Insider Trades.

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