Laureate Education Chief Operating Officer Sold $132K In Company Stock

A substantial insider sell was reported on March 18, by Marcelo Cardoso, Chief Operating Officer at Laureate Education LAUR, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Cardoso executed a sale of 6,942 shares of Laureate Education with a total value of $132,800.

The latest market snapshot at Wednesday morning reveals Laureate Education shares down by 0.0%, trading at $19.3.

All You Need to Know About Laureate Education

Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico.

Breaking Down Laureate Education’s Financial Performance

Positive Revenue Trend: Examining Laureate Education’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.41% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 31.99%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Laureate Education’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.62.

Debt Management: Laureate Education’s debt-to-equity ratio is below the industry average at 0.45, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 10.05, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.9 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.04, Laureate Education could be considered undervalued.

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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Understanding the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Exploring Key Transaction Codes

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 Laureate Education’s Insider Trades.

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