Insider Transaction: James Tim OBrien Sells $1.01M Worth Of N-able Shares

A substantial insider sell was reported on August 14, by James Tim OBrien, EVP at N-able NABL, based on the recent SEC filing.

What Happened: OBrien's recent move involves selling 78,057 shares of N-able. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $1,008,938.

At Thursday morning, N-able shares are down by 0.0%, trading at $12.8.

Delving into N-able's Background

N-able Inc is a provider of cloud-based software solutions for managed service providers (MSPs), enabling them to support digital transformation and growth for small and medium-sized enterprises. With a flexible technology platform and powerful integrations, N-able makes it easy for MSPs to monitor, manage, and protect their end-customer systems, data, and networks. The company's growing portfolio of management, security, automation, and data protection solutions is built for IT services management professionals. Geographically, the majority of revenue is from the United States. it also has a presence in the United Kingdom and all other International regions.

Unraveling the Financial Story of N-able

Revenue Growth: N-able'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 12.6%. This indicates a substantial increase in the company's 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 Information Technology sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 83.96%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): N-able's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.05.

Debt Management: N-able's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: N-able's P/E ratio of 71.11 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 5.34, 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): With a lower-than-industry-average EV/EBITDA ratio of 23.74, N-able presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Essential Transaction Codes Unveiled

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 N-able's Insider Trades.

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