Sell Alert: Larry Kraus Cashes Out $231K In Ollie's Bargain Outlet Stock

Larry Kraus, VP at Ollie's Bargain Outlet OLLI, reported an insider sell on March 28, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Kraus executed a sale of 2,928 shares of Ollie's Bargain Outlet with a total value of $231,312.

During Friday's morning session, Ollie's Bargain Outlet shares up by 0.95%, currently priced at $79.57.

All You Need to Know About Ollie's Bargain Outlet

Ollie's Bargain Outlet Holdings Inc is a retailer of brand-name merchandise at drastically reduced prices. It offers customers a selection of brand-name products, including housewares, food, books and stationery, bed and bath, floor coverings, toys, and hardware. It operates stores across the Eastern half of the United States. Its differentiated go-to-market strategy is characterized by a unique, fun, and engaging treasure hunt shopping experience, compelling customer value proposition, and witty, humorous in-store signage and advertising campaigns. These attributes have driven rapid growth and strong and consistent store performance for the company.

Ollie's Bargain Outlet's Economic Impact: An Analysis

Revenue Growth: Ollie's Bargain Outlet displayed positive results in 3 months. As of 31 January, 2024, the company achieved a solid revenue growth rate of approximately 18.04%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 40.53%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Ollie's Bargain Outlet's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.24.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.32.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 26.99, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.33 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 18.99 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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.

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Unmasking the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

Cracking Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Ollie's Bargain Outlet's Insider Trades.

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