Andrea M Stephen Implements A Sell Strategy: Offloads $1.30M In Macerich Stock

A substantial insider sell was reported on December 30, by Andrea M Stephen, Director at Macerich MAC, based on the recent SEC filing.

What Happened: Stephen's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 63,289 shares of Macerich. The total transaction value is $1,303,120.

The latest market snapshot at Tuesday morning reveals Macerich shares down by 0.0%, trading at $19.96.

All You Need to Know About Macerich

The Macerich Company invests in premium mall assets. The company owns 28 regional malls in its consolidated portfolio and 14 regional malls in its unconsolidated portfolio along with three power centers and seven other real estate assets. The company's total portfolio has 45.5 million square feet of gross leasable area and averaged $836 sales per square foot over the 12 months ended in December 2023.

Financial Insights: Macerich

Revenue Growth: Macerich's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 0.95%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 52.85%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, Macerich exhibits below-average bottom-line performance with a current EPS of -0.5.

Debt Management: Macerich's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.76.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 55.44 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.9 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): Macerich's EV/EBITDA ratio of 52.59 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Unmasking the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Understanding Crucial Transaction Codes

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 Macerich's Insider Trades.

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