Insider Decision: Ronald S Nersesian Offloads $7.14M Worth Of Keysight Techs Stock

It was reported on December 5, that Ronald S Nersesian, Director at Keysight Techs KEYS executed a significant insider sell, according to an SEC filing.

What Happened: Nersesian's recent move involves selling 41,911 shares of Keysight Techs. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $7,142,221.

Keysight Techs shares are trading down 0.0% at $169.63 at the time of this writing on Friday morning.

About Keysight Techs

Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.

A Deep Dive into Keysight Techs's Financials

Revenue Growth: Over the 3 months period, Keysight Techs showcased positive performance, achieving a revenue growth rate of 5.75% as of 31 October, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: The company maintains a high gross margin of 62.32%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Keysight Techs's EPS is below the industry average. The company faced challenges with a current EPS of -0.42. This suggests a potential decline in earnings.

Debt Management: Keysight Techs's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Keysight Techs's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 48.33.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.96 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 24.21, Keysight Techs demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Insider Transactions Are Important

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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 Keysight Techs's Insider Trades.

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