Insider Decision: SCA Horus Holdings LLC Offloads $64.00M Worth Of Sun Country Airlines Stock

A substantial insider sell was reported on December 19, by SCA Horus Holdings LLC, 10% Owner at Sun Country Airlines SNCY, based on the recent SEC filing.

What Happened: LLC's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 4,000,000 shares of Sun Country Airlines. The total transaction value is $64,000,000.

At Tuesday morning, Sun Country Airlines shares are down by 0.0%, trading at $15.88.

About Sun Country Airlines

Sun Country Airlines Holdings Inc operates low-cost air carriers. The business has two operating segments: Passenger and Cargo. The passenger segment has two internal passenger groups Scheduled service and Charter. The Cargo segment provides air cargo services. The majority of the revenue is from the passenger segment.

Financial Insights: Sun Country Airlines

Positive Revenue Trend: Examining Sun Country Airlines's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.26% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 21.58%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Sun Country Airlines's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.14.

Debt Management: Sun Country Airlines's debt-to-equity ratio is below the industry average at 1.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.81, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 0.92 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.39, Sun Country Airlines could be considered undervalued.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Sun Country Airlines's Insider Trades.

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