Zebra Technologies Chief Strategy Officer Trades Company's Stock

On November 14, a recent SEC filing unveiled that Michael Cho, Chief Strategy Officer at Zebra Technologies ZBRA made an insider sell.

What Happened: Cho's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 298 shares of Zebra Technologies. The total transaction value is $119,483.

The latest market snapshot at Friday morning reveals Zebra Technologies shares down by 0.9%, trading at $391.1.

Discovering Zebra Technologies: A Closer Look

Zebra Technologies is a leading provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.

Zebra Technologies: Financial Performance Dissected

Positive Revenue Trend: Examining Zebra Technologies's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 31.28% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics:

• Gross Margin: With a high gross margin of 48.84%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Zebra Technologies's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.65.

Debt Management: Zebra Technologies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 53.62 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.39, Zebra Technologies's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 29.88, Zebra Technologies demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Delving Into the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Closer Look at Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Zebra Technologies's Insider Trades.

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