Options Exercise Activity Initiated By Jeffery G. Korn At Crexendo

A large exercise of company stock options by Jeffery G. Korn, Chief Executive Officer at Crexendo CXDO was disclosed in a new SEC filing on December 12, as part of an insider exercise.

What Happened: The latest Form 4 filing on Thursday with the U.S. Securities and Exchange Commission uncovered Korn, Chief Executive Officer at Crexendo, exercising stock options for 7,500 shares of CXDO. The total transaction was valued at $16,650.

During Thursday's morning session, Crexendo shares up by 0.59%, currently priced at $5.15. Considering the current price, Korn's 7,500 shares have a total value of $16,650.

All You Need to Know About Crexendo

Crexendo Inc is a provider of cloud communications, UCaaS, call centers, collaboration services, and other cloud business services. The company operates through two segments: Cloud telecommunications and Software Solutions. Its cloud telecommunications segment offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over any high-speed Internet connection. The Software Solutions segment is involved in revenue generation from software licenses, software maintenance support and professional services. It generates subscription and maintenance support revenue from customer support and other supportive services. The company offers warranties on its products. It derives a majority of revenue from the Cloud telecommunications segment.

A Deep Dive into Crexendo's Financials

Revenue Growth: Crexendo's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 12.64%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 60.95%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Crexendo's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.01.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.05.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 102.4, Crexendo's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.52 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 26.39, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Crexendo's Insider Trades.

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