Modine Manufacturing Insider Trades Send A Signal

Making a noteworthy insider sell on April 1, Jon Brian Agen, VP at Modine Manufacturing MOD, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Agen sold 16,799 shares of Modine Manufacturing. The total transaction value is $1,606,584.

As of Tuesday morning, Modine Manufacturing shares are down by 2.57%, currently priced at $91.5.

Get to Know Modine Manufacturing Better

Modine Manufacturing Co provides thermal management solutions to diversified markets and customers. The company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications primarily in the United States. It offers powertrain cooling products, such as engine cooling assemblies, radiators, condensers, and charge air coolers; auxiliary cooling products, including power steering and transmission oil coolers.

A Deep Dive into Modine Manufacturing's Financials

Positive Revenue Trend: Examining Modine Manufacturing's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.25% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 22.68%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Modine Manufacturing exhibits below-average bottom-line performance with a current EPS of 0.85.

Debt Management: Modine Manufacturing's debt-to-equity ratio is below the industry average at 0.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Modine Manufacturing's P/E ratio of 22.1 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.06 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): Modine Manufacturing's EV/EBITDA ratio stands at 17.18, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Why Insider Activity Matters in Finance

Emphasizing the importance of a comprehensive approach, 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.

Cracking Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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 Modine Manufacturing's Insider Trades.

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