Making a noteworthy insider sell on November 19, Diane Olmstead, Director at Extra Space Storage EXR, is reported in the latest SEC filing.

What Happened: Olmstead’s decision to sell 3,081 shares of Extra Space Storage was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $507,009.

During Wednesday’s morning session, Extra Space Storage shares up by 0.79%, currently priced at $166.81.

Delving into Extra Space Storage’s Background

Extra Space Storage is a fully integrated real estate investment trust that owns, operates, and manages almost 3,800 self-storage properties in 42 states, with over 285 million net rentable square feet of storage space. Of these properties, approximately one half is wholly owned, while some facilities are owned through joint ventures and others are owned by third parties and managed by Extra Space Storage in exchange for a management fee.

Unraveling the Financial Story of Extra Space Storage

Positive Revenue Trend: Examining Extra Space Storage’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.26% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 72.53%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Extra Space Storage’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.91.

Debt Management: Extra Space Storage’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.87.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 44.14 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 11.16 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Extra Space Storage’s EV/EBITDA ratio, surpassing industry averages at 20.99, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Delving Into the Significance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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 To Focus On

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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 Extra Space Storage’s Insider Trades.

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