It was reported on November 7, that Steven Cunningham, Chief Financial Officer at Enova International ENVA executed a significant insider sell, according to an SEC filing.

What Happened: Cunningham opted to sell 2,455 shares of Enova International, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction’s total worth stands at $220,336.

At Friday morning, Enova International shares are up by 0.5%, trading at $99.8.

All You Need to Know About Enova International

Enova International Inc provides online financial services, including short-term consumer loans, line of credit accounts, and installment loans to customers mainly in the United States and the United Kingdom. Consumers apply for credit online, receive a decision almost immediately, and can receive funds within one day. Enova acts as either the lender or a third-party facilitator between borrowers and other lenders. The company earns revenue from interest income, finance charges, and other fees, including fees on the transactions between borrowers and third-party lenders. The majority of revenue comes from the United States. The company realizes similar amounts of revenue from each of its three different products: short-term loans, lines of credit, and installment loans.

Key Indicators: Enova International’s Financial Health

Revenue Growth: Over the 3 months period, Enova International showcased positive performance, achieving a revenue growth rate of 25.13% as of 30 September, 2024. This reflects 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 Financials sector.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 46.88%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Enova International exhibits below-average bottom-line performance with a current EPS of 1.64.

Debt Management: Enova International’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.82, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.81, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.15, 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 19.81, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Illuminating the Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

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.

Exploring Key Transaction Codes

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 Enova International’s Insider Trades.

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