Insider Transaction: James C Hale, III Sells $538K Worth Of ACI Worldwide Shares

Making a noteworthy insider sell on June 4, James C Hale, III, Director at ACI Worldwide ACIW, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, III sold 15,000 shares of ACI Worldwide. The total transaction value is $538,910.

In the Wednesday's morning session, ACI Worldwide's shares are currently trading at $35.03, experiencing a up of 0.81%.

About ACI Worldwide

ACI Worldwide Inc develops, markets, and installs a portfolio of software products 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 majority of the revenue is generated in the United States and EMEA regions.

ACI Worldwide's Financial Performance

Positive Revenue Trend: Examining ACI Worldwide's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.09% as of 31 March, 2024, showcasing a substantial increase 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.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 39.53%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): ACI Worldwide's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.07.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.84.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 25.74 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.55 is lower than the industry average, implying a discounted valuation for ACI Worldwide's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 11.57, ACI Worldwide presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

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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Illuminating the Importance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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 To Focus On

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 ACI Worldwide's Insider Trades.

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