Charles F. Willis IV, Executive Chairman at Willis Lease Finance WLFC, reported an insider sell on November 13, according to a new SEC filing.

What Happened: IV’s recent move involves selling 50,000 shares of Willis Lease Finance. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $10,103,233.

As of Thursday morning, Willis Lease Finance shares are up by 5.06%, currently priced at $210.0.

All You Need to Know About Willis Lease Finance

Willis Lease Finance Corp with its subsidiaries is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments namely Leasing and Related Operations which involves acquiring and leasing, pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The company generates the majority of its revenue from leasing and related operations.

Willis Lease Finance: Delving into Financials

Revenue Growth: Willis Lease Finance’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 38.28%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 73.39%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Willis Lease Finance’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 3.51.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.84, caution is advised due to increased financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.18 is lower than the industry average, implying a discounted valuation for Willis Lease Finance’s stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.52 is above industry norms, reflecting an elevated valuation for Willis Lease Finance’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 9.95, Willis Lease Finance presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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

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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

A Closer Look at Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Willis Lease Finance’s Insider Trades.

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