Board Member Of Hackett Group Sold $94K In Stock

On February 24, a recent SEC filing unveiled that Robert Rivero, Board Member at Hackett Group HCKT made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Rivero sold 3,077 shares of Hackett Group. The total transaction value is $94,710.

At Tuesday morning, Hackett Group shares are down by 2.02%, trading at $29.6.

Delving into Hackett Group's Background

The Hackett Group Inc is an IP-based executive advisory, strategic consulting, and digital transformation firm. It provides Generative Artificial Intelligence ("Gen AI") strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology. It operates in three segments Oracle Solutions, SAP Solutions, and Global S&BT. It generates the majority of its revenue from the Global S&BT segment in the United States.

Hackett Group's Financial Performance

Negative Revenue Trend: Examining Hackett Group's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -0.68% in revenue growth, reflecting 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 Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 39.44%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Hackett Group's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.13.

Debt Management: With a below-average debt-to-equity ratio of 0.14, Hackett Group adopts a prudent financial strategy, indicating a balanced approach to debt management.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Hackett Group's P/E ratio of 28.77 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.7 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): With a below-average EV/EBITDA ratio of 18.68, Hackett Group presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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The Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Deciphering Transaction Codes in Insider Filings

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hackett Group's Insider Trades.

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