Revealing a significant insider sell on May 22, Alejandro Quiroz, Director at Ennis EBF, as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Quiroz sold 21,580 shares of Ennis. The total transaction value is $441,405.
At Friday morning, Ennis shares are down by 0.0%, trading at $18.73.
Delving into Ennis’s Background
Ennis Inc is a manufacturer and supplier of print products for the wholesale trade. The company’s products include advertising specialities, business forms and supplies, commercial printing, eCommerce solutions, envelopes, labels and tags, and folders and packaging. Its products include snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure-sensitive products in short, medium and long runs under the following labels: Ennis, Royal Business Forms, Block Graphics, 360º Custom LabelsSM, ColorWorx, Enfusion, among others.
Financial Insights: Ennis
Negative Revenue Trend: Examining Ennis’s financials over 3 months reveals challenges. As of 28 February, 2025, the company experienced a decline of approximately -4.86% 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 Industrials sector.
Analyzing Profitability Metrics:
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Gross Margin: With a low gross margin of 29.52%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): With an EPS below industry norms, Ennis exhibits below-average bottom-line performance with a current EPS of 0.35.
Debt Management: Ennis’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: The P/E ratio of 12.16 is lower than the industry average, implying a discounted valuation for Ennis’s stock.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.24, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.21, Ennis could be considered undervalued.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Illuminating the Importance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
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.
The Insider’s Guide to Important Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, 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 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 Ennis’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
