Michael R Leach Takes Money Off The Table, Sells $171K In Allient Stock

On March 11, a recent SEC filing unveiled that Michael R Leach, Chief Financial Officer at Allient ALNT made an insider sell.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Leach executed a sale of 5,000 shares of Allient with a total value of $171,249.

Allient shares are trading down 0.0% at $32.86 at the time of this writing on Tuesday morning.

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.

Understanding the Numbers: Allient's Finances

Revenue Growth: Allient displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 7.57%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• 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 reflects a decline, falling below the industry average with a current EPS of 0.27.

Debt Management: Allient's debt-to-equity ratio stands notably higher than the industry average, reaching 0.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Allient's P/E ratio of 22.29 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.93 is lower than the industry average, implying a discounted valuation for Allient's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Allient's EV/EBITDA ratio, lower than industry averages at 11.3, indicates attractively priced shares.

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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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

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

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Allient's Insider Trades.

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