Roberto Ramirez Takes Money Off The Table, Sells $1.23M In Hackett Group Stock

Disclosed on February 24, Roberto Ramirez, Chief Financial Officer at Hackett Group HCKT, executed a substantial insider sell as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Ramirez sold 40,000 shares of Hackett Group. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $1,231,200.

Hackett Group shares are trading up 0.03% at $30.22 at the time of this writing on Tuesday morning.

All You Need to Know About Hackett Group

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: Delving into Financials

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.

Exploring Profitability:

• Gross Margin: With a high gross margin of 39.44%, the company demonstrates effective cost control and strong profitability relative to its 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: Hackett Group's debt-to-equity ratio is below the industry average at 0.14, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 28.77 is lower than the industry average, implying a discounted valuation for Hackett Group's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.7, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Hackett Group's EV/EBITDA ratio, lower than industry averages at 18.68, indicates attractively priced shares.

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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The Impact of Insider Transactions on Investments

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.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.