Insider Transaction: B Riley Financial Inc Sells $153K Worth Of Transact Technologies Shares

B Riley Financial Inc, 10% Owner at Transact Technologies TACT, reported an insider sell on January 19, according to a new SEC filing.

What Happened: Inc opted to sell 20,452 shares of Transact Technologies, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $153,611.

In the Friday's morning session, Transact Technologies's shares are currently trading at $7.69, experiencing a up of 1.85%.

Delving into Transact Technologies's Background

Transact Technologies Inc develops and sells software-driven technology and printing solutions. The company's software is sold under BOHA, AccuDate, Epic, EPICENTRAL, Ithaca, and Printrex brand names. It also provides supplies and consumables used in the printing and scanning activities to restaurant and hospitality, banking, retail, casino and gaming, point of sale automation, lottery, medical, mobile, oil, and gas markets. Most of the revenue is derived from the casinos and gaming industry followed by the Foodservice technology market. Its geographical segments are the United States and International, of which the majority of its revenue comes from the United States.

Transact Technologies: A Financial Overview

Revenue Growth: Transact Technologies'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 -3.73%. 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 Information Technology sector.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 51.87%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Transact Technologies's EPS reflects a decline, falling below the industry average with a current EPS of 0.09.

Debt Management: Transact Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.11, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 14.8 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.98 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing 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 8.3, Transact Technologies 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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Unmasking the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

A Deep Dive into Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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 Transact Technologies's Insider Trades.

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