Matson Insider Trades Send A Signal

A substantial insider sell was reported on December 14, by Richard S Kinney, Senior Vice President at Matson MATX, based on the recent SEC filing.

What Happened: Kinney opted to sell 997 shares of Matson, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $96,009.

Monitoring the market, Matson's shares down by 0.0% at $100.2 during Friday's morning.

Delving into Matson's Background

Matson Inc is engaged in providing ocean transportation and logistics services. The business segments of the company are ocean transportation which provides ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, California, Okinawa, and different islands in the South Pacific, and logistics which offers long haul and regional highway trucking services, warehousing and distribution services, supply chain management, and freight forwarding services. The firm generates the majority of its revenue from ocean transportation.

Matson: A Financial Overview

Revenue Challenges: Matson's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -25.77%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 24.58%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Matson's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.42.

Debt Management: Matson's debt-to-equity ratio is below the industry average. With a ratio of 0.31, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.16 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.17 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): With an impressive EV/EBITDA ratio of 5.93, Matson demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Unmasking the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes Worth Your Attention

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Matson's Insider Trades.

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