Sell ​​Alert: Joseph Margolis Cashes in $1.14 Million in Extra Space Storage Stock – Extra Space Storage (NYSE:EXR)

Joseph MargolisCEO at Additional storage space EXRconducted a large insider sale on July 3, according to an SEC filing.

What happened: Margolis’ latest Form 4 filing with the Securities and Exchange Commission on Wednesday revealed the sale of 7,500 shares of Additional storage spaceThe total value of the transaction is USD 1,144,350.

In the morning session on Thursday Additional storage spaceShares are currently trading at $154.2, up 0.31%.

Delve into the background of Extra Space Storage

Extra Space Storage is a fully integrated real estate investment trust that owns, operates and manages nearly 3,700 self-storage properties in 42 states, with over 280 million square feet of rentable storage space. Of these properties, approximately half are wholly owned, while some facilities are owned by joint ventures and others are owned by third parties and managed by Extra Space Storage for a management fee.

The financial history of Extra Space Storage

Sales growth: Extra Space Storage showed positive results in 3 months. As of March 31, 2024, the company achieved a solid revenue growth rate of approximately 58.94%. This indicates a significant increase in the company’s revenue. Compared to its competitors, the company achieved a growth rate that was above the average of its competitors in the real estate sector.

Profitability metrics: unlocking value

• Gross margin: The company boasts a remarkable gross margin of 72.11%indicating greater cost efficiency and profitability compared to competitors in the industry.

• Earnings per share (EPS): Extra Space Storage’s earnings per share are significantly above the industry average. The company has achieved a positive earnings trend with current earnings per share of 1.01.

Debt management: The company pursues a balanced debt approach with a debt-to-equity ratio below industry norms of 0.8.

Detailed valuation:

• Price-earnings ratio (P/E): The current P/E ratio of 35.83 is below the industry norm, indicating a possible undervaluation and represents an investment opportunity.

• Price-to-sales ratio (P/S): An above-average P/S ratio of 10.14 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 21.77The company’s market valuation is above the industry average.

Market capitalization analysis: The company’s market capitalization is above the industry average, suggesting that it is relatively large compared to peers. This could indicate a higher level of investor confidence and market awareness.

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Illuminating the importance of insider transactions

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

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.

Understanding important transaction 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.

See the full list of Extra Space Storage insider trades.

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