Revealing a significant insider sell on May 28, ValueAct Holdings LP, 10% Owner at Insight Enterprises NSIT, as per the latest SEC filing.
What Happened: LP’s decision to sell 600,000 shares of Insight Enterprises was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $76,116,000.
As of Wednesday morning, Insight Enterprises shares are down by 0.0%, currently priced at $136.93.
Delving into Insight Enterprises’s Background
Insight Enterprises Inc is a Fortune IT provider engaged in helping businesses of all sizes, large enterprises, governments, schools, and healthcare organizations. The company has three geographic operating segments: North America, EMEA, and APAC. It generates maximum revenue from the North America segment. The company provides digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services.
Insight Enterprises: Delving into Financials
Decline in Revenue: Over the 3 months period, Insight Enterprises faced challenges, resulting in a decline of approximately -11.6% in revenue growth as of 31 March, 2025. This signifies a reduction in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: The company excels with a remarkable gross margin of 19.32%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Insight Enterprises’s EPS is below the industry average. The company faced challenges with a current EPS of 0.24. This suggests a potential decline in earnings.
Debt Management: Insight Enterprises’s debt-to-equity ratio surpasses industry norms, standing at 0.77. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 27.22 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 0.6 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 12.35, Insight Enterprises demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Why Pay Attention to Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
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.
Understanding Crucial Transaction Codes
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 Insight Enterprises’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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