Massive Insider Trade At inTest

A new SEC filing reveals that Joseph W. Dews IV, Board Member at inTest INTT, made a notable insider purchase on August 15,.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that IV made a notable purchase of 10,900 shares of inTest, valuing at $74,120.

During Friday's morning session, inTest shares up by 0.69%, currently priced at $7.34.

Unveiling the Story Behind inTest

inTest Corp is a supplier of test and process solutions for use in manufacturing and testing across a range of markets including automotive, defense/aerospace, industrial, medical, semiconductor and telecommunications. The company manages its business as three operating segments which is also their reporting units that includes Electronic Test, Environmental Technologies and Process Technologies. Electronic Test (which includes semiconductor test equipment, flying probe and in-circuit testers), Environmental Technologies (which includes its thermal test, process and storage products) and Process Technologies (which includes induction heating and video imaging products). They operate their business worldwide and sells its products both domestically and internationally.

Breaking Down inTest's Financial Performance

Positive Revenue Trend: Examining inTest's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.4% as of 30 June, 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 Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 40.59%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): inTest's EPS is below the industry average. The company faced challenges with a current EPS of 0.02. This suggests a potential decline in earnings.

Debt Management: inTest's debt-to-equity ratio is below the industry average. With a ratio of 0.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.7 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.73, 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): At 9.26, inTest's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Unmasking the Significance of Insider Transactions

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

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.

Transaction Codes Worth Your Attention

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 inTest's Insider Trades.

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