On May 6, a substantial insider purchase was made by Chad Whyte, EVP at Utz Brands UTZ, as per the latest SEC filing.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Whyte increased their investment in Utz Brands by purchasing 5,000 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $59,814.
Utz Brands shares are trading up 0.57% at $12.19 at the time of this writing on Wednesday morning.
About Utz Brands
Utz Brands Inc is a manufacturer of branded salty snacks. It produces a broad offering of salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, pub/party mixes, and other snacks. Its iconic portfolio of authentic, craft, and better-for-you (BFY) brands, which includes Utz, Zapp’s, On The Border, Golden Flake, and Boulder Canyon, among others, enjoys household penetration in the United States, where its products can be found in approximately half of U.S. household. The company operates in eight manufacturing facilities with a broad range of capabilities, and its products are distributed nationally to grocery, mass, club, convenience, drug, e-commerce and other retailers through direct shipments, distributors, and approximately 2,500 DSD routes.
Financial Insights: Utz Brands
Revenue Growth: Utz Brands’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 1.6%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.
Key Profitability Indicators:
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Gross Margin: Achieving a high gross margin of 33.58%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): With an EPS below industry norms, Utz Brands exhibits below-average bottom-line performance with a current EPS of 0.09.
Debt Management: Utz Brands’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.42, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Insights into Valuation Metrics:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 36.73 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.74, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 12.73, Utz Brands presents an attractive value opportunity.
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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Uncovering the Importance of Insider Activity
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.
Essential Transaction Codes Unveiled
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Utz Brands’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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