ANDREW DEMOTT JR Decides To Exercise Options At Superior Gr of Cos

Disclosed in a recent SEC filing on December 21, JR, Board Member at Superior Gr of Cos SGC, made a noteworthy transaction involving the exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday revealed that JR, Board Member at Superior Gr of Cos in the Consumer Discretionary sector, exercised stock options for 9,115 shares of SGC stock. The exercise price of the options was $10.97 per share.

The Friday morning update indicates Superior Gr of Cos shares down by 0.0%, currently priced at $14.04. At this value, JR's 9,115 shares are worth $27,983.

Discovering Superior Gr of Cos: A Closer Look

Superior Group Of Companies Inc designs apparel products. The company's operating segment includes Branded Products; Healthcare Apparel and Contact Centers. It generates maximum revenue from the Branded Products segment. The Branded Products segment produce and sell customized merchandising solutions, promotional products and branded uniform programs to customers.

Superior Gr of Cos's Economic Impact: An Analysis

Decline in Revenue: Over the 3 months period, Superior Gr of Cos faced challenges, resulting in a decline of approximately -1.86% in revenue growth as of 30 September, 2023. This signifies a reduction 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 Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

  • Gross Margin: The company shows a low gross margin of 39.08%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

  • Earnings per Share (EPS): Superior Gr of Cos's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.19.

Debt Management: Superior Gr of Cos's debt-to-equity ratio is below the industry average at 0.62, reflecting a lower dependency on debt financing and a more conservative financial approach.

Evaluating Valuation:

  • Price to Earnings (P/E) Ratio: Superior Gr of Cos's current Price to Earnings (P/E) ratio of 30.52 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

  • Price to Sales (P/S) Ratio: The current P/S ratio of 0.41 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Superior Gr of Cos's EV/EBITDA ratio, lower than industry averages at 10.99, indicates attractively priced shares.

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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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Superior Gr of Cos's Insider Trades.

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

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