Massive Insider Trade At Allient

A notable insider purchase on March 8, was reported by Kenneth A. May, Chief Technology Officer at Allient ALNT, based on the most recent SEC filing.

What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that May bought 4,803 shares of Allient, amounting to a total of $144,090.

The latest market snapshot at Friday morning reveals Allient shares down by 0.0%, trading at $33.55.

All You Need to Know About Allient

Allient Inc, formerly Allied Motion Technologies Inc designs, manufactures, and sells precision and specialty motion control components and systems. The firm primarily caters to the vehicle, medical, aerospace and defense, and electronics and industrial, pumps, and robotics sectors. It mainly operates and sells across the United States, Canada, South America, Europe, and Asia. Its products and solutions include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues.

Breaking Down Allient's Financial Performance

Positive Revenue Trend: Examining Allient's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.57% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 31.47%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Allient's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.27.

Debt Management: With a high debt-to-equity ratio of 0.97, Allient faces challenges in effectively managing its debt levels, indicating potential financial strain.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.76 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.95, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 11.47, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

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

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