In a new SEC document dated August 7, it was revealed that Maguire, a board member at TetraTech TTEKhas exercised a significant number of the Company’s stock options.

What happened: A Form 4 filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday revealed that Maguire, a board member of Tetra Tech, an industrials company, just exercised stock options worth 4,000 TTEK shares with an exercise price of $47.95.

TetraTech Shares are trading down 0.0% at $228.65 on Thursday morning, representing a value of $722,800 for Maguire’s 4,000 shares.

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.

Financial Insights: Tetra Tech

Positive sales trend: Looking at Tetra Tech’s financial figures over 3 months shows a positive development. The company achieved a remarkable sales growth rate of 11.2% as of June 30, 2024 and shows a significant increase in sales. Compared to other companies in the industrial sector, the company was characterized by a growth rate above the average of its competitors.

Assessment of earnings development:

• 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): The company boasts an EPS that exceeds the industry average. With a current EPS of 1.6Tetra Tech has strong earnings per share.

Debt management: Tetra Tech’s debt ratio is below the industry average at 0.63This is due to a lower dependence on external financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price-earnings ratio (P/E): Tetra Tech’s P/E ratio is 42.36 is below the industry average, suggesting the stock may be undervalued.

• Price-to-sales ratio (P/S): The P/S ratio of 2.42 is below the industry average, which means that Tetra Tech’s stock is valued lower relative to its sales performance.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): With an impressive EV/EBITDA ratio of 24.0Tetra Tech has an exemplary market valuation and exceeds the industry average.

Market capitalization analysis: The company’s market capitalization is below industry benchmarks and is of smaller magnitude compared to its peers. 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.

The importance of insider transactions

Investors should consider insider transactions as part of a complex analysis and not rely on them exclusively in making their decisions.

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

When a company insider makes a new purchase, it is an indication that he or she expects the stock price to rise.

Insider sales, on the other hand, can occur for a variety of reasons and do not necessarily mean that the seller expects a drop in share price.

Navigating the world of insider trading codes

When reviewing transactions, investors often focus on those that occur in the open market and are described in detail in Table I of Form 4. P in Box 3 indicates a purchase, while S means a sale. Transaction code C refers to the conversion of an option and the transaction code A means a grant, allocation 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.