CEO Of Park-Ohio Hldgs Purchased $4.50M In Stock

On August 26, a substantial insider purchase was made by Matthew V Crawford, CEO at Park-Ohio Hldgs PKOH, as per the latest SEC filing.

What Happened: Crawford's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 148,612 shares of Park-Ohio Hldgs. The total transaction value is $4,499,971.

In the Tuesday's morning session, Park-Ohio Hldgs's shares are currently trading at $30.24, experiencing a down of 0.0%.

About 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.

Financial Milestones: Park-Ohio Hldgs's Journey

Positive Revenue Trend: Examining Park-Ohio Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.05% as of 30 June, 2024, 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 Industrials sector.

Navigating Financial Profits:

• Gross Margin: With a low gross margin of 16.92%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Park-Ohio Hldgs's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.95.

Debt Management: Park-Ohio Hldgs's debt-to-equity ratio surpasses industry norms, standing at 2.48. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 9.08 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.23, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.27, Park-Ohio Hldgs presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Understanding Crucial Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Park-Ohio Hldgs's Insider Trades.

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