Colm Barrington Of Willis Lease Finance Shows Optimism, Buys $582K In Stock

Colm Barrington, Board Member at Willis Lease Finance WLFC, disclosed an insider purchase on July 15, based on a new SEC filing.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Barrington bought 8,000 shares of Willis Lease Finance, amounting to a total of $582,240.

Monitoring the market, Willis Lease Finance's shares down by 0.0% at $71.84 during Tuesday's morning.

All You Need to Know About Willis Lease Finance

Willis Lease Finance Corp with its subsidiaries is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments namely Leasing and Related Operations which involves acquiring and leasing, pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The company generates the majority of its revenue from leasing and related operations.

Willis Lease Finance: A Financial Overview

Positive Revenue Trend: Examining Willis Lease Finance's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 33.0% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 74.17%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Willis Lease Finance's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.12.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.76, caution is advised due to increased financial risk.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Willis Lease Finance's P/E ratio of 8.35 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.06 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): With an EV/EBITDA ratio lower than industry averages at 8.34, Willis Lease Finance could be considered undervalued.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Important 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 Willis Lease Finance's Insider Trades.

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