A large exercise of company stock options by David Grzebinski, CEO at Kirby KEX was disclosed in a new SEC filing on September 17, as part of an insider exercise.

What Happened: Grzebinski, CEO at Kirby, exercised stock options for 26,358 shares of KEX stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $75.5 per share.

Currently, Kirby shares are trading down 0.0%, priced at $122.88 during Wednesday’s morning. This values Grzebinski’s 26,358 shares at $1,248,842.

Unveiling the Story Behind Kirby

Kirby Corp is a domestic tank barge operator, transporting bulk liquid products throughout three United States coasts. The Company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. The Company conducts operations in two reportable business segments: The Marine transportation segment which provides marine transportation services, operating tank barges and towing vessels transporting bulk liquid products, and the Distribution and services segment, which provides after-market service, and genuine replacement parts for engines, transmissions, reduction gears, and power generation equipment used in oil and gas and commercial and industrial applications. The company’s revenue is generated from the Marine Transportation segment.

A Deep Dive into Kirby’s Financials

Revenue Growth: Over the 3 months period, Kirby showcased positive performance, achieving a revenue growth rate of 6.07% as of 30 June, 2024. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 25.56%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Kirby’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.44.

Debt Management: Kirby’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.38.

Market Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 26.09 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.27 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.88 positions the company as being more valued compared to industry benchmarks.

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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Uncovering the Importance of Insider Activity

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Kirby’s Insider Trades.

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