SVP At Keysight Techs Sells $3.12M Of Stock

Soon Chai Gooi, SVP at Keysight Techs KEYS, executed a substantial insider sell on December 5, according to an SEC filing.

What Happened: Gooi's decision to sell 18,212 shares of Keysight Techs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $3,120,425.

During Friday's morning session, Keysight Techs shares down by 0.07%, currently priced at $169.51.

Delving into Keysight Techs's Background

Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.

Keysight Techs's Financial Performance

Revenue Growth: Keysight Techs's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2024, the company achieved a revenue growth rate of approximately 5.75%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 62.32%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Keysight Techs's EPS reflects a decline, falling below the industry average with a current EPS of -0.42.

Debt Management: With a below-average debt-to-equity ratio of 0.4, Keysight Techs adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Keysight Techs's current Price to Earnings (P/E) ratio of 48.33 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.96 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): At 24.21, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Transaction Codes To Focus On

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Keysight Techs's Insider Trades.

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