TD Synnex Insider Trades Send A Signal

On January 23, a recent SEC filing unveiled that DENNIS POLK, Head Hyve Solutions at TD Synnex SNX made an insider sell.

What Happened: After conducting a thorough analysis, POLK sold 7,000 shares of TD Synnex. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $738,010.

Monitoring the market, TD Synnex's shares down by 0.0% at $106.19 during Wednesday's morning.

About TD Synnex

TD Synnex Corp is a global distributor and solutions aggregator for the IT ecosystem. Its edge-to-cloud portfolio is anchored in some of the technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility, and everything as a service.

TD Synnex: Financial Performance Dissected

Revenue Growth: Over the 3 months period, TD Synnex showcased positive performance, achieving a revenue growth rate of 3.2% as of 30 November, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 7.07%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): TD Synnex's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.06.

Debt Management: With a below-average debt-to-equity ratio of 0.5, TD Synnex adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 15.85 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.17 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): A high EV/EBITDA ratio of 11.56 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Delving Into the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

When it comes to 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 indicates 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 TD Synnex's Insider Trades.

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