Sell Alert: Higginbotham, Robert C.T. Cashes Out $594K In T. Rowe Price Gr Stock

A substantial insider sell was reported on December 13, by Higginbotham, Robert C.T., Vice President at T. Rowe Price Gr TROW, based on the recent SEC filing.

What Happened: C.T.'s recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 5,977 shares of T. Rowe Price Gr. The total transaction value is $594,146.

The latest market snapshot at Wednesday morning reveals T. Rowe Price Gr shares down by 0.76%, trading at $98.6.

Get to Know T. Rowe Price Gr Better

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just over 9% of its AUM from overseas.

T. Rowe Price Gr's Economic Impact: An Analysis

Revenue Growth: Over the 3 months period, T. Rowe Price Gr showcased positive performance, achieving a revenue growth rate of 5.19% as of 30 September, 2023. This reflects a substantial increase in the company's 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 Financials sector.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 53.05%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, T. Rowe Price Gr exhibits below-average bottom-line performance with a current EPS of 1.98.

Debt Management: With a below-average debt-to-equity ratio of 0.03, T. Rowe Price Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.15 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.52, which is lower than the industry average. This suggests a possible undervaluation based on 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 7.38, T. Rowe Price Gr presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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 T. Rowe Price Gr's Insider Trades.

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