Board Member Of SolarWinds Sold $331K In Stock

Easwaran Sundaram, Board Member at SolarWinds SWI, reported an insider sell on August 7, according to a new SEC filing.

What Happened: Sundaram's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 30,000 shares of SolarWinds. The total transaction value is $331,800.

During Thursday's morning session, SolarWinds shares up by 0.24%, currently priced at $12.66.

All You Need to Know About SolarWinds

SolarWinds Corp is a provider of information technology (IT), and management software. Company offers full-stack observability solutions. The company's business is focused on building products that enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether on-premises, in the cloud or in hybrid deployments. The products offered are designed to monitor and manage networks, systems, databases and applications across on-premises, multi-cloud and hybrid IT environments without the need for customization or professional services.

Breaking Down SolarWinds's Financial Performance

Revenue Growth: SolarWinds's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 4.44%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 89.52%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): SolarWinds's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.07.

Debt Management: SolarWinds's debt-to-equity ratio is below the industry average. With a ratio of 0.97, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 105.25 is lower than the industry average, implying a discounted valuation for SolarWinds's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.76, 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): SolarWinds's EV/EBITDA ratio, lower than industry averages at 12.54, indicates attractively priced shares.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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

Delving Into the Significance 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.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 SolarWinds's Insider Trades.

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