Insider Unloading: Brian N Carter Sells $244K Worth Of Tetra Tech Shares

Making a noteworthy insider sell on December 5, Brian N Carter, SVP at Tetra Tech TTEK, is reported in the latest SEC filing.

What Happened: Carter opted to sell 1,474 shares of Tetra Tech, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $244,064.

The latest market snapshot at Wednesday morning reveals Tetra Tech shares up by 0.15%, trading at $163.39.

Discovering Tetra Tech: A Closer Look

Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.

Financial Milestones: Tetra Tech's Journey

Revenue Growth: Over the 3 months period, Tetra Tech showcased positive performance, achieving a revenue growth rate of 39.67% as of 30 September, 2023. This reflects 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 Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 16.82%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Tetra Tech's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.01.

Debt Management: Tetra Tech's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.78.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 31.99 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.93 is lower than the industry average, implying a discounted valuation for Tetra Tech's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 18.67, 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 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 Insider Transactions Are Key in Investment Decisions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes Worth Your Attention

When analyzing 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 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 Tetra Tech's Insider Trades.

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