Insider Transaction: Scott W Behrens Sells $1.41M Worth Of ACI Worldwide Shares

Revealing a significant insider sell on April 18, Scott W Behrens, Chief Financial Officer at ACI Worldwide ACIW, as per the latest SEC filing.

What Happened: Behrens’s decision to sell 27,046 shares of ACI Worldwide was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $1,412,342.

At Friday morning, ACI Worldwide shares are down by 0.72%, trading at $50.94.

Delving into ACI Worldwide’s Background

ACI Worldwide Inc develops, markets and installs a portfolio of software products focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI’s customers are financial institutions all over the world, but majority of the revenue is generated in the United States and EMEA regions.

Financial Insights: ACI Worldwide

Negative Revenue Trend: Examining ACI Worldwide’s financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -4.94% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 55.83%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): ACI Worldwide’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.94.

Debt Management: ACI Worldwide’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.67, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 26.86 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 3.43 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on 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 13.85, ACI Worldwide could be considered undervalued.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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

Understanding the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 ACI Worldwide’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.