Insider Decision: Walter C Johnsen Exercises Options At Acme United For $142K

On September 3, it was revealed in an SEC filing that Walter C Johnsen, Chairman and CEO at Acme United ACU executed a significant exercise of company stock options.

What Happened: Johnsen, Chairman and CEO at Acme United, exercised stock options for 6,000 shares of ACU stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $19.18 per share.

As of Wednesday morning, Acme United shares are down by 0.76%, with a current price of $43.0. This implies that Johnsen's 6,000 shares have a value of $142,920.

Delving into Acme United's Background

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.

Acme United's Economic Impact: An Analysis

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 3.92%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 40.82%, the company performs well in terms of cost management and profitability within its sector.

• 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: 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.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Acme United's P/E ratio of 8.53 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.89 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 6.03 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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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The Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

A Closer Look at Important 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.