Kishore Korde, EVP at Air Lease AL, executed a substantial insider sell on November 25, according to an SEC filing.

What Happened: Korde’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 14,661 shares of Air Lease. The total transaction value is $740,154.

Air Lease‘s shares are actively trading at $51.5, experiencing a down of 1.27% during Tuesday’s morning session.

Discovering Air Lease: A Closer Look

Air Lease Corp is an aircraft leasing company based in the United States. However, it derives its revenue from the Asia region. Its business involves purchasing aircraft from renowned manufacturers such as The Boeing Company (Boeing) and Airbus S.A.S and leasing them to airline companies across the world. Its suite of aircraft entails single-aisle narrow-bodied jets and twin-aisle wide-bodied aircraft. The company earns from revenue originates from the renting of flight equipment. Geographically it operates in Asia Pacific, Europe, The Middle East and Africa, Central America, South America and Mexico and U.S. and Canada.

Key Indicators: Air Lease’s Financial Health

Revenue Growth: Over the 3 months period, Air Lease showcased positive performance, achieving a revenue growth rate of 4.67% as of 30 September, 2024. This reflects 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.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 28.54%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Air Lease’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.82.

Debt Management: Air Lease’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.63, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.88 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.13 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Air Lease’s EV/EBITDA ratio at 13.89 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Air Lease’s Insider Trades.

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