Joseph LaDue Implements A Sell Strategy: Offloads $146K In REV Group Stock

Joseph LaDue, VP at REV Group REVG, disclosed an insider sell on January 15, according to a recent SEC filing.

What Happened: LaDue's decision to sell 4,533 shares of REV Group was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $146,007.

During Thursday's morning session, REV Group shares down by 0.54%, currently priced at $33.26.

About REV Group

REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. During the first fiscal quarter of 2024, the Company formed the Specialty Vehicles Segment by combining the Fire & Emergency and Commercial segment businesses. Additionally, the Recreation segment was renamed Recreational Vehicles. As a result, the Company is now organized into two reportable segments. The company operates in the United States, Canada, and the rest of the world. Maximum of revenue is gained from Specialty Vehicles Segment.

Financial Milestones: REV Group's Journey

Revenue Challenges: REV Group's revenue growth over 3 months faced difficulties. As of 31 October, 2024, the company experienced a decline of approximately -13.76%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 13.18%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): REV Group's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.81.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.27.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.08 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.77, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): REV Group's EV/EBITDA ratio, lower than industry averages at 4.66, indicates attractively priced shares.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

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.

The Insider's Guide to Important Transaction Codes

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 REV Group's Insider Trades.

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