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GlobalSCAPE Insiders Invest in Company

- By Kyle Ferguson

210/GSB Acquisition Partners, a Dallas-based investment firm, purchased a total 199,600 shares of GlobalSCAPE Inc. (GSB) in March.

The investment firm purchased 147,600 shares of GlobalSCAPE on March 1 and March 2 in three separate transactions. On March 1, the firm bought 125,100 shares for $3.80 per share. The following day, it purchased 22,500 shares for $3.84 per share.

The firm then purchased an additional 52,000 shares on March 20 and March 21 in two separate transactions for $3.84 per share, according to filings with the SEC.

After these transactions, the 10% owner now holds over 3.7 million shares.

Headquartered in San Antonio, GlobalSCAPE engages in securing data and intellectual property. Its services include managed file transfer, secure electronic mail, file replication and synchronization, secure file transfer protocol and mobile file sharing through the development and distribution of software, delivery of managed and hosted solutions and provisioning of associated services.

Over the past five years, GlobalSCAPE has averaged an 8.53% increase in revenue, a 44.97% increase in capital spending, a 92.06% increase in gross margin and a 17.68% increase in cash flow.

GlobalSCAPE has a market cap of $85.4 million, an enterprise value of $73.7 million, a price-earnings (P/E) ratio of 22.04, a price-book (P/B) ratio of 2.83 and a price-sales (P/S) ratio of 2.6.

According to GuruFocus, GlobalSCAPE has a 9 of 10 financial strength rating with no debt and an equity-asset ratio 0.60. Its Altman Z-Score of 3.77 indicates the company is financially strong.

The company has a 6 of 10 profitability and growth rating. It has an operating margin of 17.74%, a net margin of 12.04%, return on assets (ROA) of 8.71% and three-year revenue growth rate of 6.50%.

With over 20 years of operating experience, GlobalSCAPE is trusted by more than 13,000 companies worldwide.

The company won multiple awards in 2015:

  • It was named by Texas Monthly magazine as one of the best companies to work for in Texas for the fifth year in a row, ranking third in the medium-size category.
  • It was named to the San Antonio Business Journal's 2015 Fast Track List for companies with $10 million or more in revenue.
  • It was named by the San Antonio Express News as the number one Top Workplace for 2015 in the small company category, and recognized as one of the top workplaces for the fifth time in its existence.

Guru Jim Simons (Trades, Portfolio) added to his stake in GlobalSCAPE during the fourth quarter. The company's market price has gained an estimated 5% since then.

The Peter Lynch chart below shows GlobalSCAPE is trading slightly above its intrinsic value.

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

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This article first appeared on GuruFocus.