Limbach Holdings Insider Trades Send A Signal

A substantial insider sell was reported on August 20, by Joshua Horowitz, Board Member at Limbach Holdings LMB, based on the recent SEC filing.

What Happened: Horowitz's decision to sell 13,272 shares of Limbach Holdings was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $791,906.

At Wednesday morning, Limbach Holdings shares are down by 0.0%, trading at $59.87.

Unveiling the Story Behind Limbach Holdings

Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. It operates in two segments namely General Contractor Relationships (GCR) and Owner Direct Relationships (ODR). The company generates maximum revenue from the ODR segment.

Limbach Holdings's Economic Impact: An Analysis

Negative Revenue Trend: Examining Limbach Holdings's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -2.12% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 27.41%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Limbach Holdings exhibits below-average bottom-line performance with a current EPS of 0.53.

Debt Management: Limbach Holdings's debt-to-equity ratio is below the industry average at 0.32, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 27.72 is lower than the industry average, implying a discounted valuation for Limbach Holdings's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.42 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.82 reflects market recognition of Limbach Holdings's value, positioning it as more highly valued compared to industry peers.

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.

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

Navigating the Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Exploring Key Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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 Limbach Holdings's Insider Trades.

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