144K Reasons To Be Bullish On Harte-Hanks Stock

A significant insider buy by Bradley Radoff, Board Member at Harte-Hanks HHS, was executed on December 5, and reported in the recent SEC filing.

What Happened: Radoff's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, involves purchasing 20,000 shares of Harte-Hanks. The total transaction value is $144,670.

In the Wednesday's morning session, Harte-Hanks's shares are currently trading at $6.91, experiencing a down of 6.62%.

About Harte-Hanks

Harte-Hanks Inc is a customer experience company. The Company operates three business segments: Marketing Services; Customer Care; and Fulfillment & Logistics Services. The company has its geographic presence in United States and Other countries. Majority of the revenue is earned from United States.

Key Indicators: Harte-Hanks's Financial Health

Revenue Growth: Harte-Hanks's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -12.56%. This indicates a decrease in the company's 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 Communication Services sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 67.36%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Harte-Hanks's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.09.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.93.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 2.41 is lower than the industry average, implying a discounted valuation for Harte-Hanks's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.28 is lower than the industry average, implying a discounted valuation for Harte-Hanks'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 5.02, Harte-Hanks presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Transactions Are Key in Investment Decisions

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes Worth Your Attention

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 Harte-Hanks's Insider Trades.

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