Making a noteworthy insider sell on November 14, William Stan Meyer, Chief Operating Officer at Grand Canyon Education LOPE, is reported in the latest SEC filing.

What Happened: Meyer’s decision to sell 2,800 shares of Grand Canyon 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 $478,380.

Monitoring the market, Grand Canyon Education‘s shares down by 0.0% at $164.88 during Friday’s morning.

Delving into Grand Canyon Education’s Background

Grand Canyon Education Inc is a publicly traded education services company dedicated to serving colleges and universities. GCE’s university partner is Grand Canyon University, an Arizona non-profit corporation that operates a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across nine colleges both online, on ground at its campus in Phoenix, Arizona and at four off-site classroom and laboratory sites. The Company generates all of its revenue through services agreements with its university partners.

Grand Canyon Education: Delving into Financials

Revenue Growth: Grand Canyon Education’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.38%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 50.01%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Grand Canyon Education’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.43.

Debt Management: With a below-average debt-to-equity ratio of 0.14, Grand Canyon Education adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.67, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.77 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Grand Canyon Education’s EV/EBITDA ratio, lower than industry averages at 14.36, indicates attractively priced shares.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Understanding the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view 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 Grand Canyon Education’s Insider Trades.

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