Chief Marketing Officer Of Zebra Technologies Makes $470K Buy

A notable insider purchase on March 6, was reported by John Robert Armstrong Jr, Chief Marketing Officer at Zebra Technologies ZBRA, based on the most recent SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Jr purchased 1,532 shares of Zebra Technologies, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $470,078.

As of Friday morning, Zebra Technologies shares are down by 0.78%, currently priced at $292.26.

Delving into Zebra Technologies’s Background

Zebra Technologies is a leading provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.

Zebra Technologies’s Economic Impact: An Analysis

Revenue Growth: Zebra Technologies displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 32.21%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 48.58%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Zebra Technologies’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.17.

Debt Management: Zebra Technologies’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 28.94 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 3.07 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): Zebra Technologies’s EV/EBITDA ratio, surpassing industry averages at 17.71, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Understanding the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

When it comes to 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 indicates 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 Zebra Technologies’s Insider Trades.

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