Leslie Gallardo Swanson, EVP at Tanger SKT, disclosed an insider sell on September 11, according to a recent SEC filing.

What Happened: Swanson opted to sell 17,900 shares of Tanger, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $550,246.

Tanger‘s shares are actively trading at $30.91, experiencing a down of 0.0% during Thursday’s morning session.

Delving into Tanger’s Background

Tanger Inc is a leading owner and operator of outlet and open-air retail shopping destinations. Tanger’s portfolio of 38 outlet centers and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in U.S. states and Canada.

Key Indicators: Tanger’s Financial Health

Revenue Growth: Tanger’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 16.55%. This signifies a substantial 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 Real Estate sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 70.88%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Tanger’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.23.

Debt Management: Tanger’s debt-to-equity ratio stands notably higher than the industry average, reaching 2.79. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 34.34 is lower than the industry average, implying a discounted valuation for Tanger’s stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 6.76 is lower than the industry average, implying a discounted valuation for Tanger’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 17.41, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Transaction Codes To Focus On

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 Tanger’s Insider Trades.

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