Insider Move: Scott W Behrens Exercises Options, Realizing $273K At ACI Worldwide

Scott W Behrens, Chief Financial Officer at ACI Worldwide ACIW, reported a large exercise of company stock options on December 5, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Behrens, Chief Financial Officer at ACI Worldwide, a company in the Information Technology sector, just exercised stock options worth 39,540 shares of ACIW stock with an exercise price of $20.51.

The Wednesday morning update indicates ACI Worldwide shares down by 0.0%, currently priced at $27.42. At this value, Behrens's 39,540 shares are worth $273,090.

All You Need to Know About ACI Worldwide

ACI Worldwide Inc develops, markets, and installs a portfolio of software products primarily focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but most of the revenue is generated in the United States and EMEA regions.

ACI Worldwide's Economic Impact: An Analysis

Revenue Growth: ACI Worldwide displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 18.4%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 51.07%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): ACI Worldwide's EPS reflects a decline, falling below the industry average with a current EPS of 0.35.

Debt Management: ACI Worldwide's debt-to-equity ratio is below the industry average at 0.91, reflecting a lower dependency on debt financing and a more conservative financial approach.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 35.18 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.1 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): The company's EV/EBITDA ratio 11.66 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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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Unmasking the Significance of 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.

Transaction Codes To Focus On

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 ACI Worldwide's Insider Trades.

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