Director Of Park-Ohio Hldgs Makes $377K Buy

A notable insider purchase on June 13, was reported by Edward F Crawford, Director at Park-Ohio Hldgs PKOH, based on the most recent SEC filing.

What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Crawford bought 15,000 shares of Park-Ohio Hldgs, amounting to a total of $377,150.

Tracking the Thursday's morning session, Park-Ohio Hldgs shares are trading at $25.89, showing a down of 0.0%.

Unveiling the Story Behind Park-Ohio Hldgs

Park-Ohio Holdings Corp is a company, engaged in industrial supply chain logistics and diversified manufacturing business. It operates in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery and electronic billing services for a range of production components.

Park-Ohio Hldgs: Financial Performance Dissected

Decline in Revenue: Over the 3 months period, Park-Ohio Hldgs faced challenges, resulting in a decline of approximately -1.39% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's 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.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.1%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Park-Ohio Hldgs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.77.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.48, caution is advised due to increased financial risk.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Park-Ohio Hldgs's P/E ratio of 8.85 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.2 is lower than the industry average, implying a discounted valuation for Park-Ohio Hldgs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 8.05 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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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Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Park-Ohio Hldgs's Insider Trades.

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