Insider Transaction: Justin A Kershaw Sells $188K Worth Of Atkore Shares

Justin A Kershaw, Director at Atkore ATKR, reported an insider sell on March 13, according to a new SEC filing.

What Happened: Kershaw's decision to sell 1,099 shares of Atkore was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $188,772.

Tracking the Thursday's morning session, Atkore shares are trading at $176.13, showing a down of 0.0%.

Get to Know Atkore Better

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: A Financial Overview

Revenue Challenges: Atkore's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -4.24%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 36.39%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Atkore's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.66.

Debt Management: Atkore's debt-to-equity ratio is below the industry average at 0.61, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 10.56, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.95 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 7.21, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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Why Insider Transactions Are Important

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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.