Richard Medway, General Counsel at Savers Value Village SVV, reported an insider sell on November 18, according to a new SEC filing.

What Happened: Medway’s recent move involves selling 19,500 shares of Savers Value Village. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $195,000.

Monitoring the market, Savers Value Village‘s shares down by 0.66% at $9.01 during Tuesday’s morning.

All You Need to Know About Savers Value Village

Savers Value Village Inc is a for-profit thrift operator in the United States and Canada. It purchases second hand textiles (i.e., clothing, bedding, and bath items), shoes, accessories, housewares, books and other goods from its non-profit partners (“NPPs”), either directly from them or via on-site donations (“OSDs”) at Community Donation Centers at its stores. The company then process, selects, price, merchandise and sell these items in its stores.

Savers Value Village: A Financial Overview

Revenue Growth: Over the 3 months period, Savers Value Village showcased positive performance, achieving a revenue growth rate of 0.53% as of 30 September, 2024. This reflects 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.

Profitability Metrics: Unlocking Value

• Gross Margin: The company excels with a remarkable gross margin of 56.74%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Savers Value Village’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.13.

Debt Management: With a high debt-to-equity ratio of 2.99, Savers Value Village faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 19.72 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.0 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 12.41, Savers Value Village 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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Why Insider Activity Matters in Finance

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.

Transaction Codes Worth Your Attention

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Savers Value Village’s Insider Trades.

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