CAPITAL LLC, Board Member at American Public Education APEI, disclosed an insider sell on May 30, according to a recent SEC filing.
What Happened: LLC’s recent move involves selling 134,054 shares of American Public Education. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $3,976,086.
Monitoring the market, American Public Education‘s shares up by 1.29% at $29.48 during Friday’s morning.
All You Need to Know About American Public Education
American Public Education Inc provides online and campus based postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public University segment which is the key revenue generator; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
A Deep Dive into American Public Education’s Financials
Positive Revenue Trend: Examining American Public Education’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.55% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Exploring Profitability:
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Gross Margin: Achieving a high gross margin of 54.46%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): American Public Education’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.42.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.74, caution is advised due to increased financial risk.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: American Public Education’s P/E ratio of 28.53 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.84 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 10.32, American Public Education could be considered undervalued.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Illuminating the Importance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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.
Breaking Down the Significance of Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 American Public Education’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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