Smart Money Move: Edward Richard Hudson Grabs $1.08M Worth Of Zebra Technologies Stock

It was revealed in a recent SEC filing that Edward Richard Hudson, Chief Revenue Officer at Zebra Technologies ZBRA made a noteworthy insider purchase on March 6,.

What Happened: Hudson demonstrated confidence in Zebra Technologies by purchasing 3,520 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the transaction is $1,080,076.

The latest update on Friday morning shows Zebra Technologies shares down by 0.0%, trading at $294.56.

Get to Know Zebra Technologies Better

Zebra Technologies is a leading provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.

Financial Insights: Zebra Technologies

Revenue Growth: Zebra Technologies's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 32.21%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Exploring Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 48.58%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Zebra Technologies's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.17.

Debt Management: Zebra Technologies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 28.94 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.07, 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): At 17.71, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

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 Zebra Technologies's Insider Trades.

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