A substantial insider sell was reported on September 10, by Joshua Horowitz, Director at Limbach Holdings LMB, based on the recent SEC filing.

What Happened: After conducting a thorough analysis, Horowitz sold 1,000 shares of Limbach Holdings. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $65,030.

Limbach Holdings‘s shares are actively trading at $66.64, experiencing a down of 0.0% during Wednesday’s morning session.

Delving into Limbach Holdings’s Background

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: Delving into Financials

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. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 27.41%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Limbach Holdings’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.53.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.32.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 30.85 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.58 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): At 16.54, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

The Insider’s Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Limbach Holdings’s Insider Trades.

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