Itron Board Member Sold $1.42M In Company Stock

Disclosed on March 7, Jerome Lande, Board Member at Itron ITRI, executed a substantial insider sell as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Lande sold 14,896 shares of Itron. The total transaction value is $1,418,894.

The latest update on Friday morning shows Itron shares up by 0.7%, trading at $96.52.

Discovering Itron: A Closer Look

Itron Inc provides solutions that measure, manage, and analyze energy and water use. It operates under the Itron brand and manages and reports under three operating segments: Device Solutions, Networked Solutions, and Outcomes. The device Solutions segment includes hardware products used for measurement, control, or sense that do not have communications capability embedded for use with broader Itron systems. The networked Solutions segment includes a combination of communicating devices, network infrastructure, and associated application software designed and sold as a complete solution. The outcome segment includes their value-added, enhanced software and services which manage, organize, analyze, and interpret data to improve decision-making and maximize operational profitability.

A Deep Dive into Itron's Financials

Revenue Growth: Itron displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 23.46%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 34.03%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Itron's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.98.

Debt Management: With a below-average debt-to-equity ratio of 0.37, Itron adopts a prudent financial strategy, indicating a balanced approach to debt management.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Itron's current Price to Earnings (P/E) ratio of 45.43 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.02, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 23.78, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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

Why Insider Activity Matters in Finance

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Cracking 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 Itron's Insider Trades.

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