On December 5, a recent SEC filing unveiled that Michelle Link, Chief Human Resources at Maximus MMS made an insider sell.
What Happened: Link's recent move involves selling 2,208 shares of Maximus. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $163,016.
As of Thursday morning, Maximus shares are down by 0.0%, currently priced at $74.66.
About Maximus
Maximus Inc designs, develops, and delivers programs, enabling people to access vital government services. It translates health and human services public policy into operating models that achieve outcomes for governments at scale. The company covers a broad array of services, including the operation of large health insurance eligibility and enrollment programs; clinical services, including assessments, appeals, and independent medical reviews; and technology services. The company operates through the following segments; U.S. Federal Services, U.S. Services, and Outside the U.S. A majority of its revenue is derived from the U.S. Federal Services segment which engages with various U.S. federal government agencies to deliver clinical services, maintenance services, and technology solutions.
Financial Insights: Maximus
Revenue Growth: Over the 3 months period, Maximus showcased positive performance, achieving a revenue growth rate of 4.44% 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 Industrials sector.
Profitability Metrics:
-
Gross Margin: With a low gross margin of 22.93%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
-
Earnings per Share (EPS): Maximus's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.2.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.69.
In-Depth Valuation Examination:
-
Price to Earnings (P/E) Ratio: Maximus's P/E ratio of 14.96 is below the industry average, suggesting the stock may be undervalued.
-
Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.87, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 9.05 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Pay Attention to Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
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.
Essential Transaction Codes Unveiled
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 Maximus's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
