Insider Transaction: Norman H Asbjornson Sells $1.60M Worth Of AAON Shares

Making a noteworthy insider sell on March 13, Norman H Asbjornson, Director at AAON AAON, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Asbjornson sold 19,888 shares of AAON. The total transaction value is $1,600,589.

AAON's shares are actively trading at $80.4, experiencing a up of 0.51% during Wednesday's morning session.

Discovering AAON: A Closer Look

AAON Inc is a manufacturer of air-conditioning and heating equipment. The products include rooftop units, chillers, packaged outdoor mechanical rooms, air-handling units, makeup air units, energy-recovery units, condensing units, geothermal heat pumps, and self-contained units and coils. AAON's products serve the commercial and industrial new construction and replacement markets, primarily in North America.

AAON: Financial Performance Dissected

Revenue Growth: Over the 3 months period, AAON showcased positive performance, achieving a revenue growth rate of 20.44% as of 31 December, 2023. This reflects a substantial 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.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 36.44%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): AAON's EPS reflects a decline, falling below the industry average with a current EPS of 0.58.

Debt Management: AAON's debt-to-equity ratio is below the industry average. With a ratio of 0.07, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 37.55 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.7 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 23.93, AAON demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

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 AAON's Insider Trades.

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