A substantial insider sell was reported on May 12, by Dr. Ferruzzi, Director at Sensient Technologies SXT, based on the recent SEC filing.
What Happened: Ferruzzi’s decision to sell 1,668 shares of Sensient Technologies was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $159,214.
The latest market snapshot at Tuesday morning reveals Sensient Technologies shares down by 0.0%, trading at $94.94.
About Sensient Technologies
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient’s offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company’s reportable segments are; Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
Key Indicators: Sensient Technologies’s Financial Health
Revenue Growth: Over the 3 months period, Sensient Technologies showcased positive performance, achieving a revenue growth rate of 1.99% as of 31 March, 2025. 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 Materials sector.
Evaluating Earnings Performance:
-
Gross Margin: The company shows a low gross margin of 33.59%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): Sensient Technologies’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.82.
Debt Management: With a below-average debt-to-equity ratio of 0.64, Sensient Technologies adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Metrics:
-
Price to Earnings (P/E) Ratio: Sensient Technologies’s P/E ratio of 31.44 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 2.57 suggests overvaluation in the eyes of investors, considering sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 18.33 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: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Closer Look at Important Transaction Codes
Examining transactions, investors often concentrate on those unfolding 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 Sensient Technologies’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.
