Smart Money Move: Matthew Simmes Grabs $3.82M Worth Of IES Hldgs Stock

In a recent SEC filing, it was revealed that Matthew Simmes, President and COO at IES Hldgs IESC, made a noteworthy insider purchase on November 26,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Simmes increased their investment in IES Hldgs by purchasing 13,740 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $3,819,857.

In the Wednesday's morning session, IES Hldgs's shares are currently trading at $299.52, experiencing a down of 0.0%.

Get to Know IES Hldgs Better

IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. The majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation, and air conditioning (HVAC) and plumbing installation services. This segment also provides services for installing residential solar power, both for new construction and existing residences.

Breaking Down IES Hldgs's Financial Performance

Revenue Growth: IES Hldgs displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 19.53%. This indicates a notable 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 Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 24.03%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): IES Hldgs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.1.

Debt Management: With a below-average debt-to-equity ratio of 0.1, IES Hldgs adopts a prudent financial strategy, indicating a balanced approach to debt management.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 30.29 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.12 is above industry norms, reflecting an elevated valuation for IES Hldgs's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 17.23, IES Hldgs presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 IES Hldgs's Insider Trades.

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