A substantial insider sell was reported on September 12, by JOHN CHRISTOPHER PERRY, President at Broadridge Financial Soln BR, based on the recent SEC filing.

What Happened: PERRY opted to sell 17,534 shares of Broadridge Financial Soln, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction’s total worth stands at $3,741,859.

At Friday morning, Broadridge Financial Soln shares are up by 0.55%, trading at $211.68.

All You Need to Know About Broadridge Financial Soln

Broadridge Financial Solutions, which was spun off from ADP in 2007, is a leading provider of investor communications and technology-driven solutions to banks, broker/dealers, asset managers, wealth managers, and corporate issuers. Broadridge is composed of two segments: investor communication solutions, or ICS, and global technology and operations, or GTO.

Broadridge Financial Soln’s Financial Performance

Revenue Growth: Broadridge Financial Soln displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.73%. This indicates a notable increase in the company’s 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.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 35.55%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Broadridge Financial Soln’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.75.

Debt Management: With a high debt-to-equity ratio of 1.65, Broadridge Financial Soln faces challenges in effectively managing its debt levels, indicating potential financial strain.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 35.93, Broadridge Financial Soln’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.85 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): A high EV/EBITDA ratio of 18.49 reflects market recognition of Broadridge Financial Soln’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Broadridge Financial Soln’s Insider Trades.

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