DAVID VETTER, Chief Legal Officer at TD Synnex SNX, executed a substantial insider sell on October 21, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that VETTER sold 20,000 shares of TD Synnex. The total transaction amounted to $2,462,800.

At Tuesday morning, TD Synnex shares are down by 0.0%, trading at $120.75.

Delving into TD Synnex’s Background

TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem. The company aggregates and distributes IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. Its geographical segments include, the Americas, Europe, and APJ.

Breaking Down TD Synnex’s Financial Performance

Positive Revenue Trend: Examining TD Synnex’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.19% as of 31 August, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 6.54%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): TD Synnex’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.09.

Debt Management: With a below-average debt-to-equity ratio of 0.5, TD Synnex adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 15.66 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.18, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 8.62, TD Synnex presents an attractive value opportunity.

Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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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.

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

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 TD Synnex’s Insider Trades.

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