Insider Transaction: John W Pregenzer Sells $1.04M Worth Of Atkore Shares

Revealing a significant insider sell on February 26, John W Pregenzer, President at Atkore ATKR, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Pregenzer sold 6,548 shares of Atkore. The total transaction amounted to $1,037,823.

The latest update on Tuesday morning shows Atkore shares down by 0.0%, trading at $161.03.

Unveiling the Story Behind Atkore

Atkore Inc is a diversified industrials company and a manufacturer of electrical, mechanical, and safety infrastructure solutions. Atkore has two business segments: electrical and safety and infrastructure. Net sales are highest in the electrical business line as well as in the United States. The key product categories in the electrical segment are PVC conduit, steel conduit, and PVC-coated conduit, which are staples for electrical distributors. The key product categories in the safety and infrastructure segment include in-line galvanized mechanical tube, metal framing and related fittings, and security bollards. Also, the company provides ancillary services to customers in the form of slitting and cutting structural steel sheets.

Atkore's Financial Performance

Revenue Growth: Atkore's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -15.46%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 34.66%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Atkore's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.7.

Debt Management: With a below-average debt-to-equity ratio of 0.6, Atkore adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 9.65 is lower than the industry average, implying a discounted valuation for Atkore's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.78 is lower than the industry average, implying a discounted valuation for Atkore's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 6.64, Atkore's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Atkore's Insider Trades.

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