TD Synnex Insider Trades Send A Signal

Making a noteworthy insider sell on July 15, Patrick Zammit, Chief Operating Officer at TD Synnex SNX, is reported in the latest SEC filing.

What Happened: Zammit's decision to sell 3,513 shares of TD Synnex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $397,952.

Tracking the Tuesday's morning session, TD Synnex shares are trading at $115.24, showing a up of 0.13%.

All You Need to Know About TD Synnex

TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem. The company aggregates and distributes IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. Its geographical segments include, the Americas, Europe, and APJ.

TD Synnex: Delving into Financials

Negative Revenue Trend: Examining TD Synnex's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -0.81% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 6.98%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): TD Synnex's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.67.

Debt Management: TD Synnex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.58, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 16.14, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.18 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): The company's EV/EBITDA ratio of 8.8 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Illuminating the Importance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of 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 TD Synnex's Insider Trades.

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