STEVEN RAYMUND, Director at Jabil JBL, executed a substantial insider sell on October 28, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that RAYMUND sold 20,000 shares of Jabil. The total transaction amounted to $2,494,096.

Tracking the Tuesday’s morning session, Jabil shares are trading at $125.22, showing a up of 0.34%.

About Jabil

Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions. It provides comprehensive electronics design, production and product management services to companies in various industries and end markets.The Company derives its revenue from providing comprehensive electronics design, production and product management services. It operates in two segments. The Electronics Manufacturing Services (EMS) segment, which is the key revenue driver, is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics. The Diversified Manufacturing Services (DMS) segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies, and healthcare.

Unraveling the Financial Story of Jabil

Revenue Growth: Jabil’s revenue growth over a period of 3 months has been noteworthy. As of 31 August, 2024, the company achieved a revenue growth rate of approximately 2.94%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 9.52%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.2, Jabil showcases strong earnings per share.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.88, caution is advised due to increased financial risk.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Jabil’s P/E ratio of 11.17 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.54, 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 6.87, Jabil presents an attractive value opportunity.

Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Exploring the Significance of Insider Trading

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

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.

Essential Transaction Codes Unveiled

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 Jabil’s Insider Trades.

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