On November 6, a recent SEC filing unveiled that Peter T Heilmann, EVP at Matson MATX made an insider sell.

What Happened: Heilmann’s decision to sell 5,404 shares of Matson was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $877,373.

In the Thursday’s morning session, Matson‘s shares are currently trading at $166.03, experiencing a up of 0.21%.

Discovering Matson: A Closer Look

Matson Inc is engaged in providing ocean transportation and logistics services. The business segments of the company are Ocean Transportation which provides ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, California, Okinawa, and different islands in the South Pacific, and Logistics segment which offers long haul and regional highway trucking services, warehousing and distribution services, supply chain management, and freight forwarding services. The firm generates the majority of its revenue from Ocean Transportation segment.

Matson: A Financial Overview

Positive Revenue Trend: Examining Matson’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.25% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 31.99%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Matson’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 5.98.

Debt Management: Matson’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.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 13.96 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.73, Matson’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Matson’s EV/EBITDA ratio, surpassing industry averages at 7.19, positions it with an above-average valuation in the market.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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Delving Into the Significance of Insider Transactions

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

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Matson’s Insider Trades.

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