Brink's Insider Reduces Position in Company

Director sells 900,000 shares

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Mar 08, 2017
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Peter Feld, a director of The Brink’s Co. (BCO, Financial), sold 900,000 shares in 40 transactions between March 3 and March 7, according to SEC filings. They were sold for an average price of $52.39 per share.

Feld now owns 3,028,940 shares of the company following the sale.

Headquartered in Richmond, Virginia, Brink's provides secure logistics and security solutions to banks and financial institutions. The company’s services include cash-in-transit, ATM replenishment and maintenance, international transportation of valuables, cash management and payment services.

The company serves financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world.

Brink's has a market cap of $2.61 billion, a price-earnings (P/E) ratio of 76.62, an enterprise value of $2.93 billion and a price-book (P/B) ratio of 7.72.

According to GuruFocus, the company has a 6 out of 10 financial strength rating with an equity-asset ratio of 0.17. The Altman Z-Score of 3.18 indicates the company is in the safe zone and is not in any danger of filing for bankruptcy.

The company has a 5 out of 10 profitability and growth rating. It has an operating margin of 4.77%, a net margin of 1.14%, a return on equity (ROE) of 10.2% and a return on assets (ROA) of 1.73%.

According to a Wall Street Journal article, Doug Pertz, Brink's president and CEO, is satisfied with the company's strong finish to 2016.

"We were pleased to finish 2016 on such a strong note, with a 58% increase in fourth-quarter non-GAAP earnings per share that was driven primarily by a revenue and profit rebound in the U.S. and additional profit growth in Latin America and Mexico," Pertz said.

The stock witnessed a recent upswing in price and has gained an estimated 30% since the beginning of 2017.

The Peter Lynch chart below shows the stock is trading above its intrinsic value.

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Gurus Mario Gabelli (Trades, Portfolio), John Rogers (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) all reduced their stake in Brink's during the fourth quarter. Joel Greenblatt (Trades, Portfolio) established a position.

Disclosure: Author does not own any shares of this company.

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