A significant insider buy by Douglas Bergeron, Board Member at Cantaloupe CTLP, was executed on September 30, and reported in the recent SEC filing.

What Happened: Bergeron’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 284,000 shares of Cantaloupe. The total transaction value is $2,100,834.

During Tuesday’s morning session, Cantaloupe shares up by 6.76%, currently priced at $7.9.

About Cantaloupe

Cantaloupe Inc operates in the small ticket electronic payments industry. It provides wireless, cashless, micro-transactions, and networking services within the unattended Point of Sale (POS) market. Its products and services portfolio consists of ePort Cashless devices, eSuds, EnergyMisers, and Value-added services which include Loyalty and Prepaid, Intelligent Vending, and others. The company offers services to different industries covering car wash, taxi and transportation, laundry, vending, kiosk, amusement, and arcade. The company derives revenue from the sale or lease of equipment and services to the small ticket, unattended POS market, and the majority of its revenue is derived from subscription and transaction fees.

Cantaloupe: A Financial Overview

Revenue Growth: Cantaloupe displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 13.22%. 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 Financials sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 37.3%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Cantaloupe’s EPS reflects a decline, falling below the industry average with a current EPS of 0.03.

Debt Management: Cantaloupe’s debt-to-equity ratio is below the industry average at 0.26, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 49.33 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.04 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): Cantaloupe’s EV/EBITDA ratio of 18.89 exceeds industry averages, indicating a premium valuation in the market

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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Illuminating the Importance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider’s Guide to Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Cantaloupe’s Insider Trades.

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