On May 29, Steven Ortega, Board Member at BJ’s Wholesale Club Hldgs BJ executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Ortega made a notable purchase of 1,740 shares of BJ’s Wholesale Club Hldgs, valuing at $199,404.
BJ’s Wholesale Club Hldgs‘s shares are actively trading at $111.1, experiencing a up of 0.05% during Friday’s morning session.
About BJ’s Wholesale Club Hldgs
BJ’s Wholesale serves as one of the few warehouse club chains in the United States. Its 250 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ’s charges annual membership fees and keeps costs down by operating a “no-frills” store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of 7,000 stock-keeping units at its warehouses to achieve greater procurement scale on select items. About 80% of BJ’s net sales come from grocery items and general merchandise, with the remaining 20% stemming from gasoline and other ancillary services.
BJ’s Wholesale Club Hldgs: Financial Performance Dissected
Decline in Revenue: Over the 3 months period, BJ’s Wholesale Club Hldgs faced challenges, resulting in a decline of approximately -2.37% in revenue growth as of 30 April, 2025. This signifies a reduction in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Interpreting Earnings Metrics:
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Gross Margin: The company shows a low gross margin of 18.81%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): BJ’s Wholesale Club Hldgs’s EPS reflects a decline, falling below the industry average with a current EPS of 1.14.
Debt Management: BJ’s Wholesale Club Hldgs’s debt-to-equity ratio surpasses industry norms, standing at 1.37. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 25.82 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.71 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 averages at 16.01, BJ’s Wholesale Club Hldgs could be considered undervalued.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Understanding the Significance of Insider Transactions
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
The Insider’s Guide to Important Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, 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 BJ’s Wholesale Club Hldgs’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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