A substantial insider activity was disclosed on October 15, as TOGHRAIE, Chairman at AXIL Brands AXIL, reported the exercise of a large sell of company stock options.

What Happened: A notable Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission revealed that TOGHRAIE, Chairman at AXIL Brands, exercised stock options for 0 shares of AXIL, resulting in a transaction value of $0.

The Wednesday morning update indicates AXIL Brands shares up by 0.52%, currently priced at $3.87. At this value, TOGHRAIE’s 0 shares are worth $0.

Unveiling the Story Behind AXIL Brands

AXIL Brands Inc is a company which is is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL brand. AXIL delivers top hearing enhancement, protection, & audio devices. From ultra comfortable fitting processes, to stereo quality sound performance, to reliable & durable engineering.

Financial Insights: AXIL Brands

Revenue Growth: AXIL Brands’s revenue growth over a period of 3 months has faced challenges. As of 31 August, 2024, the company experienced a revenue decline of approximately -4.18%. This indicates a decrease in the company’s top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: With a high gross margin of 70.99%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): AXIL Brands’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.02.

Debt Management: AXIL Brands’s debt-to-equity ratio is below the industry average at 0.02, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.39 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.84 is above industry norms, reflecting an elevated valuation for AXIL Brands’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): AXIL Brands’s EV/EBITDA ratio of 13.31 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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The Relevance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Deciphering Transaction Codes in Insider Filings

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 AXIL Brands’s Insider Trades.

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