Strategic Sale: Walter C Johnsen Decides To Exercise Options Worth $904K At Acme United

A large exercise of company stock options by Walter C Johnsen, Chairman and CEO at Acme United ACU was disclosed in a new SEC filing on July 24, as part of an insider exercise.

What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Johnsen, Chairman and CEO at Acme United, exercised stock options for 40,000 shares of ACU, resulting in a transaction value of $904,400.

Acme United shares are trading down 0.0% at $39.53 at the time of this writing on Thursday morning. Since the current price is $39.53, this makes Johnsen's 40,000 shares worth $904,400.

Discovering Acme United: A Closer Look

Acme United Corp is a supplier of first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods, and industrial markets. Its principal products sold across all segments are first aid kits and medical products, scissors, shears, knives, rulers, pencil sharpeners, and sharpening tools. The Company sells its products to mass market and e-commerce retailers, industrial distributors, wholesale, contract, and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains. The Company's reportable business segments consist of the United States, Canada, and Europe, out of which the majority of the company's revenue is derived from the United States.

Unraveling the Financial Story of Acme United

Revenue Growth: Acme United's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 23.29%. This signifies 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.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 40.82%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.21, Acme United showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 0.41, Acme United adopts a prudent financial strategy, indicating a balanced approach to debt management.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 7.78, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.81 is lower than the industry average, implying a discounted valuation for Acme United's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 6.69, Acme United presents an attractive value opportunity.

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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Uncovering the Importance of Insider Activity

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Transaction Codes Worth Your Attention

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 Acme United's Insider Trades.

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