Board Member Of Keysight Techs Sold $713K In Stock

Revealing a significant insider sell on December 13, James Cullen, Board Member at Keysight Techs KEYS, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Cullen sold 4,869 shares of Keysight Techs. The total transaction value is $713,154.

Keysight Techs shares are trading up 1.91% at $155.22 at the time of this writing on Thursday morning.

Get to Know Keysight Techs Better

Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.

Unraveling the Financial Story of Keysight Techs

Negative Revenue Trend: Examining Keysight Techs's financials over 3 months reveals challenges. As of 31 October, 2023, the company experienced a decline of approximately -5.14% 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.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 64.38%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Keysight Techs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.28.

Debt Management: Keysight Techs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.44.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 25.77 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.99, Keysight Techs's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 15.88, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Cracking Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Keysight Techs's Insider Trades.

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