Edmond Villani implements a selling strategy: sells Cohen & Steers shares worth $259,000 – Cohen & Steers (NYSE:CNS)

On August 28, it was reported that Edmond VillaniBoard member at Cohen & Steers CNS has made a significant insider sale, according to an SEC filing.

What happened: A Form 4 filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday revealed that Villani purchased 3,000 shares of Cohen & SteersThe total amount of the transaction was $259,980.

Follow-up to Thursday morning session, Cohen & Steers Shares are trading at $86.43, down 0.0%.

Get to know Cohen & Steers better

Cohen & Steers is a niche asset manager focused on real estate securities. The firm invests primarily in real estate mutual fund equities, with holdings in domestic and international real estate securities representing nearly two-thirds of its $79.3 billion in assets under management at the end of January 2024. Cohen & Steers also manages portfolios focused on preferred securities, utility stocks and other high-yield offerings. The firm’s allocation is balanced between its closed-end funds, open-end funds and institutional accounts. Over the last four calendar quarters, the firm generated 42% (27%) of its assets under management (base management fees) from institutional clients, 45% (52%) from open-end funds and 13% (21%) from closed-end funds.

Financial Milestones: The Journey of Cohen & Steers

Sales growth: Cohen & Steers delivered positive results in 3 months. As of June 30, 2024, the company achieved a solid revenue growth rate of approximately 2.19%. This indicates a significant increase in the company’s revenue. Compared to its competitors, the company has struggled and had a lower growth rate than the average of its competitors in the financial sector.

Profitability insights:

• Gross margin: With a low gross profit margin of 47.65%The company has below-average profitability, indicating potential problems with cost efficiency compared to competitors in the industry.

• Earnings per share (EPS): Cohen & Steers earnings per share reflect a decline and are below the industry average with current earnings per share of 0.63.

Debt management: Cohen & Steers’ debt ratio is below the industry average of 0.31This is due to a lower dependence on external financing and a more conservative financial approach.

Detailed valuation:

• Price-earnings ratio (P/E): The price-earnings ratio of 33.89 is below the industry average and indicates a possible undervaluation of the stock.

• Price-to-sales ratio (P/S): An above-average P/S ratio of 8.57 In the eyes of investors, this indicates an overvaluation in view of the sales development.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): With an EV/EBITDA ratio of 22.03Cohen & Steers has a robust market valuation and outperforms industry benchmarks.

Market capitalization: Due to its limited market capitalization, the company is below the industry average. This reflects a smaller size compared to competitors.

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The importance of insider transactions

As insightful as insider transactions may be, they should be considered as part of a thorough review of other investment criteria.

In the legal field, an “insider” is defined under Section 12 of the Securities Exchange Act of 1934 as 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 must disclose their transactions in a Form 4, which must be filed within two business days of the transaction.

In particular, when a company insider makes a new purchase, this is considered an indicator of his positive expectations regarding the stock.

Conversely, insider sales do not necessarily indicate a pessimistic attitude towards the stock and can have various reasons.

Decryption of transaction codes in insider filings

When investors look at transactions, they typically prioritize those that develop in the open market, as detailed in Table I of Form 4. P in Box 3 means a purchase, while S means a sale. Transaction code C signals the conversion of an option and the transaction code A means a grant, assignment or other acquisition of securities of the company.

View the full list of Cohen & Steers insider trades.

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