Eye On Growth: Mary K Newman Adds $124K Of IES Hldgs Stock To Portfolio

On December 12, a substantial insider purchase was made by Mary K Newman, VP at IES Hldgs IESC, as per the latest SEC filing.

What Happened: Newman demonstrated confidence in IES Hldgs by purchasing 1,660 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $124,002.

IES Hldgs's shares are actively trading at $82.83, experiencing a up of 0.26% during Wednesday's morning session.

About IES Hldgs

IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions and Commercial & Industrial. Majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services. Through this segment it also provides services for the installation of residential solar power, both for new construction and existing residences.

Financial Milestones: IES Hldgs's Journey

Positive Revenue Trend: Examining IES Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.12% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 21.66%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.67, IES Hldgs showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 18.2 is lower than the industry average, implying a discounted valuation for IES Hldgs's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.71, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): IES Hldgs's EV/EBITDA ratio at 8.67 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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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.

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.

Essential Transaction Codes Unveiled

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 IES Hldgs's Insider Trades.

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