Insider Selling: Pamela Burke Unloads $64K Of Grocery Outlet Holding Stock

Disclosed on March 7, Pamela Burke, EVP at Grocery Outlet Holding GO, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that Burke sold 5,706 shares of Grocery Outlet Holding. The total transaction amounted to $64,706.

Grocery Outlet Holding‘s shares are actively trading at $11.94, experiencing a up of 3.56% during Friday’s morning session.

Get to Know Grocery Outlet Holding Better

Grocery Outlet Holding Corp is a grocery store operator in the United States. It is a retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.

Breaking Down Grocery Outlet Holding’s Financial Performance

Revenue Growth: Over the 3 months period, Grocery Outlet Holding showcased positive performance, achieving a revenue growth rate of 10.91% as of 31 December, 2024. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Profitability Metrics:

• Gross Margin: With a low gross margin of 29.5%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Grocery Outlet Holding’s EPS is below the industry average. The company faced challenges with a current EPS of 0.02. This suggests a potential decline in earnings.

Debt Management: Grocery Outlet Holding’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.38.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 28.82, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.26 is lower than the industry average, implying a discounted valuation for Grocery Outlet Holding’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 14.12 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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.

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Uncovering the Importance of Insider Activity

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

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Grocery Outlet Holding’s Insider Trades.

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