Disclosed on September 12, Kirsten M Volpi, Board Member at Tetra Tech TTEK, executed a substantial insider sell as per the latest SEC filing.

What Happened: Volpi’s decision to sell 1,950 shares of Tetra Tech was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $89,700.

Tracking the Friday’s morning session, Tetra Tech shares are trading at $46.09, showing a up of 0.08%.

About Tetra Tech

Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.

Tetra Tech’s Financial Performance

Revenue Growth: Over the 3 months period, Tetra Tech showcased positive performance, achieving a revenue growth rate of 11.2% as of 30 June, 2024. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 16.6%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Tetra Tech’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.32.

Debt Management: Tetra Tech’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.63.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 42.64, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.44 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 24.15, 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 Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Tetra Tech’s Insider Trades.

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