Jacobs Solutions Recent Insider Activity

Patrick Hill, Executive Vice President at Jacobs Solutions J, reported an insider sell on December 12, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Hill sold 5,500 shares of Jacobs Solutions. The total transaction amounted to $701,162.

During Wednesday's morning session, Jacobs Solutions shares down by 0.0%, currently priced at $128.6.

Unveiling the Story Behind Jacobs Solutions

Jacobs Solutions is a global provider of engineering, design, procurement, construction, and maintenance services as well as cyber engineering and security solutions. The firm serves industrial, commercial, and government clients in a wide variety of sectors, including water, transportation, healthcare, technology, and chemicals. Jacobs Solutions employs approximately 60,000 workers. The company generated $16.4 billion in revenue and $1.3 billion in adjusted operating income in fiscal 2023.

Financial Insights: Jacobs Solutions

Revenue Growth: Over the 3 months period, Jacobs Solutions showcased positive performance, achieving a revenue growth rate of 10.5% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 21.25%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Jacobs Solutions's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.25.

Debt Management: With a below-average debt-to-equity ratio of 0.55, Jacobs Solutions adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 24.22 is lower than the industry average, implying a discounted valuation for Jacobs Solutions's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.0 is lower than the industry average, implying a discounted valuation for Jacobs Solutions's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Jacobs Solutions's EV/EBITDA ratio, lower than industry averages at 13.54, indicates attractively priced shares.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Importance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Jacobs Solutions's Insider Trades.

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