Board Member At AAON Sells $963K Of Stock

A substantial insider sell was reported on August 8, by Norman H Asbjornson, Board Member at AAON AAON, based on the recent SEC filing.

What Happened: Asbjornson's recent move involves selling 11,022 shares of AAON. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $963,433.

AAON's shares are actively trading at $86.07, experiencing a down of 0.0% during Friday's morning session.

Delving into AAON's Background

AAON Inc is a manufacturer of air-conditioning and heating equipment. The products include rooftop units, chillers, packaged outdoor mechanical rooms, air-handling units, makeup air units, energy-recovery units, condensing units, geothermal heat pumps, and self-contained units and coils. AAON's products serve the commercial and industrial new construction and replacement markets, primarily in North America.

A Deep Dive into AAON's Financials

Revenue Growth: Over the 3 months period, AAON showcased positive performance, achieving a revenue growth rate of 10.43% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company faces challenges with a low gross margin of 36.07%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): AAON's EPS reflects a decline, falling below the industry average with a current EPS of 0.64.

Debt Management: AAON's debt-to-equity ratio is below the industry average. With a ratio of 0.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: AAON's current Price to Earnings (P/E) ratio of 38.56 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.0 is above industry norms, reflecting an elevated valuation for AAON's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 23.82, AAON demonstrates a robust market valuation, outperforming industry benchmarks.

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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Delving Into the Significance of Insider Transactions

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.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 AAON's Insider Trades.

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