Disclosure of a significant insider sale on August 8, Preston HopsonSVP at TetraTech TTEKaccording to the most recent SEC filing.

What happened: In a Form 4 filed with the U.S. Securities and Exchange Commission (SEC) on Thursday, Hopson said he had sold 5,000 shares of TetraTech with a total value of $1,165,350.

Monitoring the market, TetraTechShares fell 0.0% to $231.76 on Friday morning.

Delve into the background of Tetra Tech

Tetra Tech Inc provides consulting and engineering services to the environmental, infrastructure, resource management, energy and international development markets. The company specializes in providing water-related services to public and private clients. It designs infrastructure, facilities and other structures with complex plans and resource management. Tetra Tech has two reportable segments. The Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. The Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients that are not development agencies.

Key Indicators: Tetra Tech’s Financial Health

Sales growth: Tetra Tech delivered positive results in 3 months. As of June 30, 2024, the company achieved a solid revenue growth rate of approximately 11.2%. This indicates a significant increase in the company’s revenue. Compared to its industry peers, the company stands out with a growth rate that is above the average of its industry peers in the industrial sector.

Key profitability indicators:

• Gross margin: The company has a low gross margin of 16.6%indicating potential challenges in cost control and profitability compared to competitors.

• Earnings per share (EPS): Tetra Tech’s earnings per share are above the industry average and indicate a strong earnings trend, with current earnings per share of 1.6.

Debt management: Tetra Tech’s debt ratio is below the industry average. With a ratio of 0.63The company is less dependent on external financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.

Exploring the landscape of evaluation metrics:

• Price-earnings ratio (P/E): The current P/E ratio of 42.92 is below the industry norm, indicating a possible undervaluation and represents an investment opportunity.

• Price-to-sales ratio (P/S): With a below-average P/S ratio of 2.45The stock has an attractive valuation and may signal a buying opportunity for investors interested in sales development.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): Tetra Tech’s EV/EBITDA ratio exceeds the industry average at 24.3positions it with an above-average rating in the market.

Market capitalization analysis: The company’s market capitalization reflects its smaller size and is below the industry average. This could be due to factors such as growth expectations or operating capacity.

Trade stocks online now, commission-free, with Charles Schwab, a trusted and comprehensive investment firm.

Why you should pay attention to insider transactions

Considering insider transactions makes sense, but it is important to evaluate them in the context of other investment factors.

From a legal perspective, an “insider” under Section 12 of the Securities Exchange Act of 1934 is any officer, director, or beneficial owner who owns more than ten percent of a company’s stock. This includes senior executives and large hedge funds. These insiders are required to disclose their transactions in a Form 4, which must be filed within two business days of the transaction.

A new purchase by a company insider is a sign of optimism and signals that he expects the stock to rise.

However, insider sales do not necessarily indicate a pessimistic assessment and can be influenced by various factors.

Transaction codes that deserve your attention

Investors prefer to focus on transactions that take place in the open market, as set out in Table I of Form 4. P in Box 3 means a purchase, while S indicates a sale. Transaction code C refers to the conversion of an option and the transaction code A means the granting, awarding or other acquisition of securities of the company.

View the full list of Tetra Tech insider trades.

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