On June 4, a recent SEC filing unveiled that Jennifer Kimball, Chief Accounting Officer at WEX WEX made an insider sell.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Kimball sold 1,400 shares of WEX. The total transaction amounted to $183,512.
WEX‘s shares are actively trading at $138.28, experiencing a down of 0.0% during Thursday’s morning session.
Discovering WEX: A Closer Look
WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the top segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. Wex’s largest end market is the United States of America.
A Deep Dive into WEX’s Financials
Negative Revenue Trend: Examining WEX’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -2.47% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics:
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Gross Margin: The company sets a benchmark with a high gross margin of 57.59%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): WEX’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.84.
Debt Management: WEX’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 6.89, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: The P/E ratio of 17.82 is lower than the industry average, implying a discounted valuation for WEX’s stock.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.15, 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 5.99, WEX could be considered undervalued.
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Uncovering the Importance of Insider Activity
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
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.
Transaction Codes To Focus On
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of WEX’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
