A substantial insider activity was disclosed on September 19, as ONeil, President and COO at Kirby KEX, reported the exercise of a large sell of company stock options.

What Happened: ONeil, President and COO at Kirby, exercised stock options for 10,698 shares of KEX stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $75.5 per share.

The Friday morning market activity shows Kirby shares down by 0.79%, trading at $126.02. This implies a total value of $540,462 for ONeil’s 10,698 shares.

Get to Know Kirby Better

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: Kirby displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 6.07%. This indicates a notable 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.

Key Profitability Indicators:

• 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 is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.44.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.38.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 26.97 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 2.35 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Kirby’s EV/EBITDA ratio stands at 13.25, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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

Unmasking the Significance of Insider Transactions

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

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to 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.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

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

Deciphering Transaction Codes in Insider Filings

When analyzing transactions, investors tend to focus on those in the open market, detailed 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 Kirby’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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