Insider Activity Update: William E. Waltz, Jr. Executes Options Exercise, Resulting In $7.49M At Atkore

William E. Waltz, Jr., President and CEO at Atkore ATKR, reported a large exercise of company stock options on March 4, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday revealed that Jr., President and CEO at Atkore in the Industrials sector, exercised stock options for 50,000 shares of ATKR stock. The exercise price of the options was $22.49 per share.

The latest update on Tuesday morning shows Atkore shares down by 0.0%, trading at $172.2. At this price, Jr.'s 50,000 shares are worth $7,485,696.

Discovering Atkore: A Closer Look

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.

Understanding the Numbers: Atkore's Finances

Revenue Growth: Atkore's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -4.24%. 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.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 36.39%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• 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 3.66.

Debt Management: Atkore's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.61.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.32 is lower than the industry average, implying a discounted valuation for Atkore's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.91, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 7.07, Atkore presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.