Marcelo Cardoso, Chief Operating Officer at Laureate Education LAUR, disclosed an insider sell on November 7, according to a recent SEC filing.

What Happened: Cardoso’s decision to sell 12,775 shares of Laureate Education was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $221,876.

During Friday’s morning session, Laureate Education shares down by 0.0%, currently priced at $18.74.

Discovering Laureate Education: A Closer Look

Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico.

Laureate Education: Financial Performance Dissected

Revenue Growth: Laureate Education’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 1.96%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.43%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Laureate Education’s EPS is below the industry average. The company faced challenges with a current EPS of 0.56. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.56, caution is advised due to increased financial risk.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 11.64, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.88, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Laureate Education’s EV/EBITDA ratio at 6.58 suggests potential undervaluation, falling below industry averages.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider’s Guide to Important Transaction Codes

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 Laureate Education’s Insider Trades.

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