A significant insider buy by Lins Armando Netto, Group President at Corpay CPAY, was executed on October 1, and reported in the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that Netto made a notable purchase of 2,459 shares of Corpay, valuing at $769,076.

The latest update on Wednesday morning shows Corpay shares down by 0.0%, trading at $314.85.

All You Need to Know About Corpay

Corpay Inc is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner. Its suite of modern payment solutions helps its customers better manage vehicle-related expenses (such as fueling and parking), travel expenses (e.g. hotel bookings), and payables (e.g. paying vendors). This results in its customers saving time and ultimately spending less.

Corpay’s Financial Performance

Revenue Growth: Corpay displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 2.9%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 78.56%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.59, Corpay showcases strong earnings per share.

Debt Management: With a high debt-to-equity ratio of 2.67, Corpay faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 22.88 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.04 is above industry norms, reflecting an elevated valuation for Corpay’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 13.61 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

The Insider’s Guide to Important 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 Corpay’s Insider Trades.

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