Insider Selling: Brian S Olschan Unloads $128K Of Acme United Stock

A substantial insider sell was reported on August 5, by Brian S Olschan, President and COO at Acme United ACU, based on the recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Olschan sold 3,149 shares of Acme United. The total transaction value is $128,731.

As of Tuesday morning, Acme United shares are up by 1.6%, currently priced at $39.98.

All You Need to Know About Acme United

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.

Breaking Down Acme United's Financial Performance

Revenue Growth: Acme United's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 23.29%. This indicates 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.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 40.82%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Acme United's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.21.

Debt Management: Acme United's debt-to-equity ratio is below the industry average. With a ratio of 0.41, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 7.75 is lower than the industry average, implying a discounted valuation for Acme United's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.81, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 6.67, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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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 the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 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 Acme United's Insider Trades.

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