In a recent transaction, Sergey Yezhkov, the SVP/Co-Head of Global Business at EPAM Systems, Inc. (NYSE:EPAM), sold 8,000 shares of the company's common stock, resulting in a total sale value of approximately $2.42 million. The shares were sold at prices ranging from $301.00 to $302.995, with a weighted average price of $302.04 per share.
This sale occurred on March 14, 2024, and was disclosed in a regulatory filing with the Securities and Exchange Commission. Following the transaction, Yezhkov's direct ownership in EPAM Systems stands at 12,770 shares of common stock.
On the same day, Yezhkov also acquired 8,000 shares at a price of $32.08 per share, amounting to a total transaction value of $256,640. This acquisition was related to the exercise of employee stock options that were set to expire on March 31, 2024. The options were part of a grant that became exercisable in increments of 25% over four years, starting from March 31, 2015.
Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's future performance. Transactions by insiders, such as the sale of shares by Sergey Yezhkov, can be indicative of their confidence in the company's current valuation and growth prospects.
EPAM Systems, Inc., headquartered in Newtown, Pennsylvania, specializes in computer programming services and is known for its global footprint in the technology sector. The company's stock is traded on the New York Stock Exchange under the ticker symbol EPAM.
InvestingPro Insights
EPAM Systems, Inc. (NYSE:EPAM) has recently been the subject of notable insider trading activity. As investors consider the implications of such transactions, it's worth examining some key financial metrics and analyst insights provided by InvestingPro. The company holds a market capitalization of approximately $17.5 billion, reflecting its significant presence in the technology services industry.
One of the noteworthy InvestingPro Tips for EPAM is that the company holds more cash than debt on its balance sheet, which may be a sign of financial stability and could provide a cushion against market volatility. Additionally, analysts have noted that EPAM is trading at a high earnings multiple, with a P/E ratio (adjusted for the last twelve months as of Q4 2023) of 35.64. This suggests that the stock may be priced with growth expectations in mind, which aligns with the insider transactions that could indicate confidence in the company's future.
When it comes to performance, EPAM's gross profit margin for the last twelve months as of Q4 2023 stands at 31.01%, demonstrating the company's ability to retain a significant portion of its revenue as gross profit. Despite recent downward revisions in earnings by 9 analysts for the upcoming period, it's important to note that EPAM is still expected to be profitable this year. Moreover, the company's liquid assets exceed its short-term obligations, which is a positive sign for its financial health.
For those interested in deeper analysis, there are additional InvestingPro Tips available that could provide further insight into EPAM's valuation, profitability, and historical performance. To explore these tips and to gain a more comprehensive understanding of EPAM's financial outlook, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 9 additional tips listed in InvestingPro to help investors make more informed decisions.
As EPAM approaches its next earnings date on May 2, 2024, investors will be keenly watching for performance indicators that could validate the recent insider trading activity and the company's market valuation.
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