EVP At Jabil Sells $145K Of Stock

Frederic McCoy, EVP at Jabil JBL, reported an insider sell on July 17, according to a new SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, McCoy sold 1,250 shares of Jabil. The total transaction value is $145,523.

Jabil's shares are actively trading at $113.63, experiencing a down of 1.12% during Thursday's morning session.

About Jabil

Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions. It provides comprehensive electronics design, production and product management services to companies in various industries and end markets.The Company derives its revenue from providing comprehensive electronics design, production and product management services. It operates in two segments. The Electronics Manufacturing Services (EMS) segment, which is the key revenue driver, is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics. The Diversified Manufacturing Services (DMS) segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies, and healthcare.

Financial Milestones: Jabil's Journey

Decline in Revenue: Over the 3 months period, Jabil faced challenges, resulting in a decline of approximately -20.18% in revenue growth as of 31 May, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 8.99%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Jabil's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.08.

Debt Management: With a high debt-to-equity ratio of 1.43, Jabil faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.43 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.49, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Jabil's EV/EBITDA ratio, lower than industry averages at 4.98, indicates attractively priced shares.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Transaction Codes Worth Your Attention

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 Jabil's Insider Trades.

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