Christopher Harborne Executes Sell Order: Offloads $710K In Innovative Solns Stock

Making a noteworthy insider sell on February 5, Christopher Harborne, 10% Owner at Innovative Solns ISSC, is reported in the latest SEC filing.

What Happened: Harborne’s decision to sell 63,368 shares of Innovative Solns was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $710,494.

The latest market snapshot at Wednesday morning reveals Innovative Solns shares down by 2.02%, trading at $11.14.

Unveiling the Story Behind Innovative Solns

Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.

Innovative Solns’s Economic Impact: An Analysis

Revenue Growth: Innovative Solns’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 18.41%. 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 Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 55.43%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Innovative Solns’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.18.

Debt Management: Innovative Solns’s debt-to-equity ratio surpasses industry norms, standing at 0.6. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Innovative Solns’s P/E ratio of 28.43 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.21 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 19.09, Innovative Solns presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Essential Transaction Codes Unveiled

When dissecting transactions, the focal point for investors is often those occurring 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 Innovative Solns’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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